Bitcoin recorded its largest intraday gain in more than a month, buoyed by the prospect of a Federal Reserve rate cut

Bitcoin posted its biggest intraday gain in more than a month on Tuesday as the prospect of a Federal Reserve rate cut was expected to boost demand for speculative assets. Bitcoin rose as much as 6.4 per cent to $61,337, its biggest intraday gain since August 8. Smaller cryptocurrencies such as Ethereum, Dogecoin and Solana also moved higher. Swap market pricing suggests the Fed will cut rates by at least 25 basis points on Wednesday, with a probability of a 50 basis point cut around 55 per cent. "I think the increasing correlation between cryptocurrencies and traditional markets recently" is driving bitcoin higher, said Shiliang Tang, president of Arbelos Markets. Tang said MicroStrategy Inc. Monday's announcement of the issuance of convertible notes to buy more bitcoin also boosted sentiment in the cryptocurrency market.