Bitcoin recovers, rises above $43,000 as Fed predicts rate cuts for 2024

US central bank officials predict the Fed rates to drop to 4.6% by the end of 2024
An undated image displays a standing Bitcoin. — Pixabay
An undated image displays a standing Bitcoin. — Pixabay

Bitcoin (BTC) on Tuesday observed a surprising recovery by bouncing above $43,000 again after consistently steering through the lows since Monday.

BTC, the largest cryptocurrency, surpassed $43,000 by late US afternoon hours, soaring almost 5% from below $41,000 earlier in the day.

According to a report published by CoinDesk, the gains of the largest cryptocurrency have enhanced the overall posture of the crypto market and the value of shares of digital asset-focused enterprises, with the Federal Reserve (Fed) indicating interest rate cuts for 2024.

Read more: Bitcoin surpasses $40,000 amid growing momentum

While leaving the Fed funds rate at 5.25-5.5% on Wednesday, the US central bank officials wrapped up the December Federal Open Market Committee (FOMC) meeting and predicted the rate to drop to 4.6% by the end of 2024.

Along with BTC, other cryptocurrencies that performed well with large-cap tokens were Avalanche (AVAX), Cardano (ADA) and Injective (INJ), registering around 10% gains. Meanwhile, the best-performing among CoinDesk's crypto sectors was the CoinDesk Smart Contract Platform Index (SMT).

With crypto-related stocks surging higher, the CoinDesk Market Index (CMI) was up 3.8% over the past 24 hours. Crypto exchange Coinbase (COIN) closed the trading session almost 8% higher, while Michael Saylor's MicroStrategy (MSTR) gained 5%.