Bitcoin Hits New Record Following Fed's Interest Rate Cut
The Federal Reserve's decision to lower the policy interest rate by 25 basis points has reverberated through global markets, while Bitcoin has also set a new record level. The Fed's adjustment of the interest rate to the range of 4.5%-4.75% marks the second reduction in the last four years, propelling Bitcoin to a record high of $76,822. After reaching this peak, the cryptocurrency has managed to partially maintain its gains and is currently trading around $75,700 in the morning hours.
Given that cryptocurrency markets are generally sensitive to economic developments in the U.S., this step had a positive reflection on Bitcoin's value. Market participants are closely monitoring the impact of economic agenda items such as tariffs, deregulation, and tax cuts introduced by the Trump administration on inflation. This change in the Fed's monetary policy has increased investors' interest in alternative investment vehicles like Bitcoin.
Expectations of $100,000 for Bitcoin Donald Trump's victory in the presidential elections has triggered a series of positive developments in the cryptocurrency markets. Trump’s pro-crypto stance and promises to transform the U.S. into a crypto hub have heightened optimistic expectations for Bitcoin. With Trump's potential return to the White House post-election, there is speculation that Bitcoin could surpass $100,000.
Earlier this year, the SEC's approval of cryptocurrency-based exchange-traded funds contributed to Bitcoin's rapid ascent to the $73,000 level. Market experts have labeled this rise in the crypto world as the "Trump trade," expecting it to continue strongly. Alongside positive comments from crypto supporters and heightened investor interest, both Bitcoin and many altcoins have seen significant gains. This leading crypto asset is expected to attract more investment with Trump's presidency and the implementation of SEC-approved ETFs.
Positive sentiments are rising for Bitcoin Bitcoin's appreciation following Trump's victory indicates a positive momentum in the crypto ecosystem. Bernstein analysts project that Bitcoin could reach $200,000 by 2025. This assessment is attributed to the increasing demand for stable assets, monetary expansion policies, and the absence of U.S. budget constraints. Additionally, global trade policies and economic growth strategies have also played a role in the price movements of Bitcoin.
On the other hand, there has been a noticeable revival in the crypto market following Trump's presidency. Other altcoins, including memecoins and some decentralized exchange assets, have recorded significant increases by capitalizing on this upbeat sentiment. These developments indicate that investors are searching for more opportunities in cryptocurrencies, strengthening the expectations for an altcoin rally.