Bitcoin stabilized on Thursday, and the broader crypto market rose after the Federal Reserve cut interest rates and signaled further monetary policy easing.
Cryptocurrency markets are also encouraged that the U.S. Securities and Exchange Commission has approved new listing standards for exchange-traded products, opening the door to more funds tracking cryptocurrencies.
However, caution regarding the Fed's forecasts for the economy and inflation, combined with ongoing doubts about corporate cryptocurrency treasuries, has limited overall growth in the cryptocurrency markets.
Bitcoin rose 0.1% to $117,267.6 by 12:29 Moscow time.
The Fed cut rates by 25 basis points, as expected, and predicts further cuts.
The Fed cut its benchmark interest rate by 25 basis points to a range of 4.0%-4.25%, as expected, on Wednesday.
The central bank's forecasts showed that policy makers support further easing in the rest of the year, especially if the labor market continues to deteriorate.
However, Fed Chairman Jerome Powell nevertheless noted the risks to the US economy, especially due to the cooling of the labor market and steady inflation. Powell also largely rejected calls for a more significant 50 basis point rate cut demanded by President Donald Trump and his allies.
Lowering rates is beneficial for cryptocurrencies, as it promotes capital inflows into speculative markets. The sector's bull market in 2021 was driven mainly by the global decline in interest rates to near zero levels following the COVID-19 pandemic.
SEC Revises ETF Listing Rules, Opening Doors to More Cryptocurrency Funds
The SEC on Wednesday evening approved changes proposed by three national stock exchanges that allowed them to use common listing standards for new cryptocurrency and spot commodity exchange products.
These new standards have eliminated the previous requirement that each application for a spot cryptocurrency ETF undergo an individual regulatory review. With the new common standards, the SEC has reduced the maximum time from filing to launch for the relevant spot cryptocurrency ETFs to 75 days.
It is expected that the first ETFs in accordance with the new rules will track cryptocurrencies such as Solana and XRP.
The SEC's decision is also expected to open the door to many other cryptocurrency ETFs, as it defines a more simplified listing process.
Cryptocurrency Prices Today: Altcoins and Memcoins are rising after the Fed's decision
Broader cryptocurrency prices mostly rose on Thursday as traders welcomed the prospect of further interest rate cuts in the United States. However, growth was limited across the board.
The world's second largest cryptocurrency, Ether, rose 1.7% to $4,590.11, while XRP rose 2% to $3,0812.
Solana jumped 4.1%, while Cardano gained 3.6%.
Among memcoins, Dogecoin rose 4.7%, while $TRUMP added 1.2%.