Cryptocurrencies rose during a broad market rally Thursday, one day after the Federal Reserve delivered a large interest rate cut.

Bitcoin could be on the verge of hitting new heights, according to hedge fund manager Anthony Scaramucci. The combination of expected Federal Reserve rate cuts and new U.S. cryptocurrency regulations after the presidential election might be the recipe for Bitcoin's next big surge.

Joe McCann, CEO of crypto hedge fund Asymmetric, believes a large interest rate cut by the U.S. Federal Reserve would benefit crypto markets.

Bitcoin (BTC-USD) and other major cryptocurrencies jumped in Thursday morning trading after the Federal Reserve delivered its first interest-rate cut since the onset of the pandemic and signalled further policy easing as the year draws to a close.

The crypto market surged on Thursday, with Bitcoin and Ethereum leading the gains, as Bank of America (BofA) revised its Fed rate cut forecast.

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

A widely followed crypto analyst is updating his outlook on Ethereum (ETH) and other digital assets after the Fed cut rates this week.

As of publication, BTC has surged 1.66% over the past 24 hours and was seen trading at $63,434. The Fed’s move has also lifted the overall crypto market, with the total market cap rising 2% in response.