bitcoin (btc), the leading cryptocurrency by market cap, hit a new all-time high of $76,800, driven by the recent US crisis. presidential election in which Donald Trump achieved another term in the White House and a more favorable monetary policy from the United States Federal Reserve (FED).
Second consecutive Fed 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 cryptocurrency prices.
This is the second consecutive rate cut, following a reduction of half a percentage point in September. The unanimous vote at this meeting, in which Governor Michelle Bowman participated, reflects a shift in the Federal Reserve'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) highlighted a revised assessment of economic risksindicating that the outlook for meeting employment and inflation targets is now considered balanced, a departure from the more optimistic stance of the previous month.
Cryptographic Analyst Doctor Profit x.com/DrProfitCrypto/status/1854612204852593071″ target=”_blank” rel=”nofollow”>commented on the recent surge in the stock and cryptocurrency markets, suggesting that the price increases were in anticipation of the Federal Reserve's rate cut. He predicts that continued rate cuts in the coming quarters could push up the prices of both stocks and cryptocurrencies even further.
Positive trends for bitcoin and ethereum after the elections
In an exclusive interview with NewsBTC, Nansen Senior Research Analyst Aurelie Barthere highlighted that bitcoin surpasses its previous all-time high, along with the high trading volumesindicates strong positive momentum in the market.
The analyst noted a period of “de-risking” in the run-up to the election, likely influenced by polls unfavorable to Trump, but noted a subsequent rush to “risk back” as confidence returned after the election result. , further evidenced by the increase in prices.
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Barthere also noted that a Republican victory in the House of Representatives could further amplify this rally. However, he warned that profit-taking is possible in the coming weeks as new policies are tested, particularly with regard to potential political pressure on the US SEC chairman to to resign.
The analyst noted that ethereum is also gaining ground as expectations rise for a resurgence in decentralized finance (DeFi).
Barthere noted an interesting spike in the eth/btc price ratio, accompanied by significant net inflows into ethereum exchange-traded funds (ETFs), totaling $52 million on election results day.
The analyst suggests that these continued entries into the recently approved exchange-traded fund market They are seen as indicative of broader retail interest in the second-largest cryptocurrency, which he ultimately believes has yet to see significant adoption.
At the time of writing, bitcoin was trading at $76,629, up almost 10% in the seven-day period. Similarly, eth has also seen significant gains, rising 14% in the same period to reach a current price of $2,885.
Featured image of DALL-E, chart from TradingView.com
