**Bitcoin Price Surges to Three-Week High Amid Fed Rate Cut**
Bitcoin's price climbed to a three-week high on Friday, boosted by a significant interest rate cut from the Federal Reserve. Initially reacting mixed to the news, Bitcoin eventually followed an upward trend seen in other risk-driven markets, particularly stocks. Overall, the cryptocurrency market saw broader gains, with Bitcoin rising 2.9% to $63,813.90 by 01:24 ET (05:24 GMT), its highest level since mid-August.
**Weekly Performance and Market Sentiment**
This week, Bitcoin is up 6.4%, marking its second consecutive week of gains. The Fed's 50 basis point rate cut has increased liquidity, encouraging investment in riskier assets. Analysts suggest this easing cycle could lower rates by up to 125 basis points by year-end.
However, comments from Fed Chair Jerome Powell, indicating that the Fed's neutral rate will be higher than in the past, raised concerns about the sustainability of lower rates. These remarks also fueled worries about potential economic slowdowns, which could limit future gains in crypto and other risk markets.
Low interest rates previously drove Bitcoin's 2021 bull run, but the market has since faced declining retail interest, despite some recent support from spot Bitcoin exchange-traded funds.
**Broader Cryptocurrency Market Update**
Alongside Bitcoin, the broader cryptocurrency market saw gains, although altcoins were set for a mixed weekly performance. Recent investments have largely flowed into Bitcoin and Ether, with Bitcoin maintaining its market dominance. Ether rose 5.5% to $2,544.20, achieving a 5.2% weekly gain.
Other altcoins, including SOL, XRP, ADA, and MATIC, experienced increases ranging from 0.2% to 7.2%, with Solana leading at 8.2%. However, most others were poised for flat to low weekly performances. Among meme tokens, DOGE saw a 2.4% rise and was up 1.2% for the week.