Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP) are rallying as an expected interest rate cut from the U.S. Federal Reserve on Oct. 29 approaches.
Futures traders are pricing in a near 100% chance that the American central bank lowers interest rates by 25 basis points at its upcoming policy meeting.
That prospect has led Bitcoin’s price to rally back above $115,000 U.S. The largest cryptocurrency by market capitalization had traded as low as $108,000 U.S. in the past week.
Similarly, the price of Ethereum has risen to $4,150 U.S., up 2% in the past 24 hours. XRP, a smaller crypto, is also up and trading at $2.62 U.S. per digital token.
Risk assets such as crypto are also getting a boost from reports that the U.S. and China have reached a trade deal, averting the prospect of an all-out trade war between the superpowers.
At the same time, the price of gold, a traditional safe haven asset in times of market uncertainty, continues to decline.
After hitting an all-time high above $4,300 U.S. an ounce earlier in October, gold’s price has slumped to $4,050 U.S. per ounce.
Bitcoin is currently up 23% on the year.
