Bitcoin (BTC), the leading cryptocurrency by market capitalization, surged to a new all-time high of $76,800 buoyed by the recent US presidential election which saw Donald Trump secure another term in the White House and a more favorable monetary policy from the US Federal Reserve (Fed).
Fed’s Second Consecutive Rate Cut
On Thursday, the Federal Reserve announced its decision to cut its benchmark overnight lending rate by 25 basis points to a target range of 4.50%-4.75%, adding to the bullish sentiment surrounding crypto prices.
This marks the second consecutive rate cut, following a half-percentage point reduction in September. The unanimous vote at this meeting, which included participation from Governor Michelle Bowman, reflects a shift in the Fed’s approach to balancing inflation control with labor market support.
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In its post-meeting statement, the Federal Open Market Committee (FOMC) noted a revised assessment of economic risks, indicating that the outlook for achieving employment and inflation goals is now seen as balanced, a departure from the previous month’s more optimistic stance.
Crypto analyst Doctor Profit commented on the recent surge in both stock and crypto markets, suggesting that the price increases were in anticipation of the Fed’s rate cut. He predicts that continued rate cuts in the coming quarters could further drive up prices for both stocks and cryptocurrencies.
Positive Trends For Bitcoin And Ethereum Post-Election
In an exclusive interview with NewsBTC, Nansen’s Principal Research Analyst, Aurelie Barthere, highlighted that Bitcoin rise above its previous all-time high, coupled with high trading volumes, signals a strong positive momentum in the market.
The analyst noted a period of “de-risking” in the run-up to the election, likely influenced by unfavorable polls for Trump, but observed a subsequent rush to “re-risk” as confidence returned following the election result, further evidenced by the rise in prices.
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Barthere also pointed out that the Republican victory in the House of Representatives could further amplify this rally. However, she cautioned that profit-taking may occur in the coming weeks as new policies are tested, particularly regarding the potential political pressure on the US SEC chair to step down.
The analyst pointed out that Ethereum is also gaining traction as expectations rise for a resurgence in decentralized finance…
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