Bitcoin reaches new ATH as Fed cuts interest rates by 25 bps
Bitcoin hit a new all-time high above $76,600 on Thursday amid the frenzy surrounding Donald Trump's election victory. The Federal Reserve's decision to cut interest rates by 25 basis points suggests further tightening. Analysts say the influx of “cheap capital” could fuel the bull market.
Bitcoin rose for the third day in a row.
According to data from CoinGecko, the main cryptocurrency touched a high of $76,677 across major exchanges on November 7. This comes after BTC reached a new all-time high above $75k with the news that Donald won the US presidential election on November 5th.
As Kamala Harris conceded defeat and US President Joe Biden confirmed that he would hand over power to the incoming 47th president, the top crypto rose above $76k.
Bitcoin made a new ATH amid the Fed's interest rate hike
In the year On November 7, Bitcoin price hit a new all-time high above $76.6k as the Federal Reserve announced a 25 basis point interest rate cut. The news, coming on the back of Trump's victory, added to the positive buzz in risk asset markets.
The Fed's rate cut is the second since a 50 bps cut in September. The move follows sluggish inflation data and a cold labor market. Markets may be higher on the Fed's rate cut and Chairman Jerome Powell's comments. Is “cheap capital” ready to enter the market? Investor and entrepreneur Anthony Pompliano thinks so.
BREAKING: The Federal Reserve cuts interest rates by 25 basis points.
Cheap capital is coming into the market.
— Anthony Pompliano 🌪 (@APompliano) November 7, 2024
BTC led the cryptocurrencies in the short pump, with Ethereum, Solana and BNB posting some significant gains.
ETH, for example, crossed the $2,880 mark, with an intraday gain of $2,717. SOL moved to $198, taking BNB to over $92.8 billion, rounding out the top four in the market.
Meanwhile, BNB has surpassed $600 for the first time since late October, rising above $610. The coin's market cap at the time of writing was $87.3 billion.
