It was a sea of green in the cryptocurrency industry after the jumbo interest rate cut by the Federal Reserve.
Bitcoin (BTC) led the gains, cruising above the important resistance point at $63,000 for the first time since Aug. 27.
Reef, First Neiro on ETH, and Solar (SXP) lead
Most of the large gains occurred among smaller altcoins. Reef (REEF) went parabolic, soaring to a high of $0.0048, its highest point since March 12. It has been one of the best-performing altcoins this month, jumping by over 670% from its lowest point and bringing its market cap to over $102 million.
Reef, which stands for reliable, extensible, efficient, and fast, surged a month after Binance delisted it from its exchange. This indicates that it is likely going through a short squeeze, with most of its trading happening on Gate.io and WhiteBIT.
First Neiro on ETH (NEIRO) has also been one of the best-performing coins this month. It rose to a record high of $0.00098, up by over 3,865% from its lowest level in September.
Other top performers in this crypto comeback were coins like Solar (SXP) and Billy (BILLY), which rose by over 50%.
This price action coincided with the performance of other assets. In the stock market, popular indices like the Dow Jones and Nasdaq 100 rose by over 1%, continuing the bull market that has been ongoing over the past few months.
Fed’s jumbo rate cut
The surge happened after the Federal Reserve decided to slash interest rates by 0.50%, in line with most analysts’ expectations. The Fed also hinted that it would deliver more cuts if the labor market continued to weaken.
Most crypto analysts believe that the ongoing rally has legs. In a note, Ki Young Ju, wrote that the crypto bull run was still underway. In another X post, Ju, who is the founder of CryptoQuant noted that institutional investors were no longer shorting Bitcoin.
Additionally, spot Bitcoin ETFs have seen inflows for five consecutive days, indicating that institutions likely bought the dip. According to Santiment, crypto sentiment has continued rising, which is a positive catalyst for the industry.
And as crypto.news reported earlier, the crypto fear and greed index has moved from the fear zone and risen to its highest point in weeks. In most periods, altcoins do well when the index is in an uptrend.
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