(Bloomberg) -- Bitcoin hit a three-week high alongside a jump in US equity futures as an outsized Federal Reserve interest-rate cut rippled across markets.

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The digital token rose as much as 3.9% before changing hands at $61,980 as of 10:17 a.m. Thursday in Singapore. S&P 500 contracts and Asian stocks pushed higher too, as traders adjusted to the start of an anticipated Fed easing cycle.

The central bank reduced borrowing costs by 50 basis points, the first cut in over four years. But Chair Jerome Powell was careful to avoid committing to a similar pace going forward, saying moves would be guided by economic data. That nuanced outlook muted the market reaction in US hours on Wednesday.

“An aggressive start to the easing cycle is excellent news for risky assets including Bitcoin,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for trading in digital-asset derivatives. “The market needed a few hours to see the big picture and start reflecting the improved outlook.”

Opinion was split before the Fed meeting on whether officials would opt for a quarter-point or half-point move. Powell and his colleagues are trying to preserve the strength of the US economy as labor market and inflation risks become more balanced.

“The focus will quickly move to the magnitude and extent of this cycle,” said David Lawant, research head at FalconX. “The paramount factor to watch from here on will be the trajectory of economic activity.”

Correlations between crypto and traditional investments like stocks have jumped of late, a sign that macroeconomic variables have been influencing digital-asset markets, Lawant said.

Elsewhere, a dollar gauge held firm and US Treasuries dipped, potentially a reflection of Powell’s guarded signal on the magnitude of future monetary easing.

“The Fed’s ongoing reaction function is still unclear,” Chris Weston, head of research at Pepperstone Group, wrote in a note. “They remain on an unscripted path.”

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