Investing.com– Bitcoin rose on Thursday after the Federal Reserve significantly cut interest rates and signaled the start of an easing cycle, although further gains were restricted by a less dovish outlook.

By 01:41 ET (05:41 GMT), the price was up 2.9% to $61,98.50, briefly hitting $62,539.80. The token also broke out of the $50,000-$60,000 trading range it had held for most of the year, though it remains to be seen whether that breakout will hold.

Cryptocurrency prices also rose following the Federal Reserve’s interest rate cut, although overall gains were restricted.

Bitcoin Rising, But Fed’s Less Dovish Outlook Caps Gains

The world’s largest cryptocurrency saw a broader rise in risk assets, with markets welcoming that as well as the start of the bank’s first monetary easing cycle since 2020.

However, that optimism was somewhat tempered by concerns about how breakable the Federal Reserve sees the U.S. economy as being, given that the 50 basis point cut was at the high end of market expectations.

Federal Reserve Chairman Jerome Powell allayed some concerns about the economy, saying the risks from higher inflation and a weakening labor market are now balanced.

But Powell also said the Fed has no intention of cutting rates to ultra-low levels and that the central bank’s neutral rate will be higher than in the past. His comments paint a brighter outlook for rates in the medium to long term.

This concept contributed to the appreciation of the dollar.

While lower interest rates bode well for risky, speculative assets like cryptocurrencies, they are unlikely to reach COVID-19-era lows at this point. Ultra-low interest rates were a key factor driving the cryptocurrency rally in 2021.

But since then, the industry has struggled with a series of regulatory crackdowns, as well as dwindling retail interest. The launch of spot Bitcoin ETFs earlier this year provided only a fleeting boost.

Cryptocurrency Price Today: Altcoins Rise Following Bitcoin

Cryptocurrency prices have benefited from increased risk appetite and have risen alongside the price of bitcoin.

The world’s number 2 cryptocurrency rose 3.9% to $2,412.52, while the , , , and rose 0.4% to 5.7%.

Among meme tokens, the augment was 3.3%.