Bitcoin climbs 6% to $63,000 after the Federal Reserve cuts rates by 50 basis points, boosting investor optimism.

Bitcoin jumped Tuesday ahead of the Federal Reserve’s key rate decision on Wednesday, as traders expect the central bank policymakers to deliver the first interest-rate cut in four years.

Bitcoin (BTC-USD) climbed to its highest level in three weeks in Tuesday late morning trading, driving a notable uptick in stocks linked to the cryptocurrency sector. Following what was a quiet start to the week,

Bitcoin and S&P500 see gains following a 0.25% Fed rate cut, marking a major move after four years, impacting both crypto and stock markets.

Bitcoin price has surged to its highest level in three weeks, triggering gains across the cryptocurrency sector and related stocks.

MicroStrategy’s announcement Monday of a sale of convertible notes to purchase more Bitcoin is adding to optimism, Tang said. Bitcoin has been trading within a relatively narrow range since setting a record high of almost $74 000 in March.

Since bitcoin peaked at nearly $74,000 in March, the apex token has been unable to regain its momentum. Seasonal factors weakened the spot bitcoin ETF inflows this summer while deteriorating macro conditions drove investors toward safe, risk-off assets.

Markets are seeing a nearly 70% probability of a bigger 50 bps rate cut to the 4.7%-5% range, up from 25% a month ago.

After making small gains throughout the week, shares of Coinbase, one of the largest cryptocurrency exchanges, jumped by almost 7% on the heels of a significant rate cut by the Federal Reserve. The company’s shares peaked at $174 mid-day Thursday before paring gains and closing at $168.

U.S.-listed crypto shares jumped on Thursday after a half-percentage point interest rate cut sparked a flight into risky assets, adding to the momentum of an industry that has already secured some big wins this year.