Bitcoin (BTC), the leading cryptocurrency by market capitalization, rose to a new all-time high of $76,800, supported by the recent US decision. Presidential elections Which saw Donald Trump get another term in the White House and a more accommodating monetary policy from the US Federal Reserve.
Interest rate cuts for the second consecutive time by the Federal Reserve
On Thursday, the Fed Announce Its decision to cut its benchmark overnight lending rate by 25 basis points to a target range of 4.50% to 4.75%, adding to the bullish sentiment surrounding cryptocurrency prices.
This represents the second consecutive cut in the interest rate, after reducing it by half a percentage point in September. The unanimous vote at this meeting, which included the participation of Governor Michael Bowman, reflects a shift in the Fed’s approach to achieving a balance between controlling inflation and supporting the labor market.
Related reading
In its statement after the meeting, the Federal Open Market Committee (FOMC) noted the revised assessment of Economic risksThis indicates that expectations for achieving employment and inflation targets are now considered balanced, a departure from the more optimistic stance of the previous month.
Crypto Analyst Doctor Profit Comment On the recent rise in both the stock and cryptocurrency markets, suggesting that the price increases were in anticipation of an interest rate cut by the Federal Reserve. It is expected that continued interest rate cuts in the coming quarters may lead to a rise in the prices of both stocks and cryptocurrencies.
Positive trends for Bitcoin and Ethereum after the elections
In an exclusive interview with NewsBTC, Aurélie Barthier, Principal Research Analyst at Nansen, highlighted that Bitcoin is rising above its previous all-time high, along with rising prices. Trading volumesIt indicates strong positive momentum in the market.
The analyst noted a period of “risk-off” in the run-up to the election, likely influenced by unfavorable polls for Trump, but noted a subsequent rush to “re-risk” as confidence returned after the election result, also evidenced by rising prices.
Related reading
Barthier also noted that a Republican win in the House could further amplify this caucus. However, she warned that profit-taking could occur in the coming weeks as new policies are tested, especially regarding potential political pressure on the SEC chairman to step down.
The analyst noted that Ethereum is also gaining momentum as expectations of a resurgence rise Decentralized finance (Davy).
Barthier noted an interesting rise in the Ethereum/Bitcoin price ratio, accompanied by significant net inflows into Ethereum exchange-traded funds (ETFs), which totaled $52 million on election results day.
The analyst indicates that these flows are continuing until what was recently approved ETF market It is seen as an indicator of broader retail interest in the second-largest cryptocurrency, which ultimately believes it has yet to see significant adoption.
At the time of writing, Bitcoin is trading at $76,629, up approximately 10% in the seven-day time frame. Likewise, ETH has also seen significant gains, rising 14% in the same period to reach the current price of $2,885.
Featured image of DALL-E, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.