Bitcoin and most other major cryptocurrencies rose in early morning Asian trading after the Federal Open Market Committee (FOMC) meeting released its minutes for July.
The results of its meeting show that the Federal Reserve (Fed) is likely to cut interest rates by 25 basis points in September.
Some of its officials agreed that progress in lowering inflation is increasingly clear towards the 2% target and an increase in the unemployment rate.
However, the overall crypto market capitalization jumped over 2%.
Bitcoin which has been struggling around the $59K to $60K range for the past week jumped over 3% around $62K. Ethereum (ETH) also rose over 2% after the meeting.
Risky assets such as cryptocurrencies and stocks tend to perform strongly during lower interest rate environments.
High crypto gains have led to an increase in derivative liquidations with over $31 million within 4 hours of the meeting report.
Some members of the crypto community have expressed optimism that the recent rise could be a resumption of the bull market especially if the Fed eventually cuts rates in September.