Bitcoin Price Breaks Record High and Reaches $76,800 as Market Reacts to Interest Rate Expectations

Bitcoin (BTC), the number one cryptocurrency in terms of market capitalization, has set a new record by reaching $76,800. This increase is partly driven by the recent US presidential elections, where ...
Bitcoin

Bitcoin (BTC), the number one cryptocurrency by market capitalization, has set a new record by reaching $76,800. This surge is partly driven by the recent US presidential elections, where Donald Trump won a new term, and by the favorable monetary policy changes from the US Federal Reserve.

The Federal Reserve has decided to lower the benchmark overnight lending rate by 25 basis points to a target range of 4.50%-4.75%. This is the second consecutive cut, following a half percentage point cut in September. Fed Governor Michelle Bowman even voted unanimously during this meeting, indicating a shift in the Fed’s strategy to control inflation while supporting the labor market.

Market optimism was boosted by this rate cut. Crypto analyst Doctor Profit suggested that the increase in both stock and crypto markets was a precursor to the Fed’s action. He predicted that further rate cuts in the coming quarters could further boost the prices of risky assets such as stocks and cryptocurrencies.

Following the elections, Nansen’s Principal Research Analyst, Aurelie Barthere, noted in an exclusive interview with NewsBTC that Bitcoin surpassed its previous record high, supported by high trading volumes. She pointed to a recent period of risk aversion leading up to the elections, possibly due to unfavorable polls for Trump, followed by a renewed appetite for risk after the outcome, resulting in a price increase for Bitcoin and Ethereum.

CNBC predicts that Bitcoin could reach $100,000 before Trump’s inauguration, further illustrating expectations for Bitcoin’s growth. This article provides an in-depth look at how global economic conditions and political events can influence the crypto market, giving readers the necessary information to make informed decisions in this dynamic market.

Related articles

Solana (SOL) Experiences Correction but Remains Resilient, According to Glassnode

Ethereum Whales Buy $1 Billion During Dip – Is a Price Recovery Imminent?

Crypto Crash Triggers $1 Billion in Leveraged Liquidations – A Healthy Correction or More?

“Bitcoin Policy Institute Designs Executive Order for Strategic Bitcoin Reserve for the U.S.”

Il Capo Analyzes Current Bitcoin Rally and Altcoin Opportunities

Tom Lee Predicts: Bitcoin Price to Reach $250,000 by 2025

© Copyrights | 2024 Blockchainges.com
Webdesign & Development by Magic Bytes