• Bitcoin surged above 5% in the past 24 hours after Fed Chair signaled that a rate cut is imminent.
• Cryptocurrency prices often perform better during lower interest rates environment.
• The general crypto market rallied, with several cryptocurrencies in key categories posting sizable gains.
• The rising stablecoin market cap indicates stronger buying pressure.

Bitcoin (BTC) has gained nearly 5% alongside a rally across the crypto market in the past 24 hours following indications of interest rate cut from Federal Reserve (Fed) Chair Jerome Powell's keynote on Friday morning.

Bitcoin's love for low interest rate

In his speech, Powell noted that the labor market has cooled and "conditions are now less tight than those that prevailed before the pandemic." Hence, "the time has come for policy to adjust," he said.

Bitcoin and the crypto market have historically posted higher prices when interest rates are low. This is evidenced by the crypto market bull run and ICO boom in 2017 when rates hovered around 0.75% - 1% and 1% - 1.25%. However, the market began seeing a correction when the Fed began hiking rates in 2018.