- Bitcoin rose to a new all-time high above $76,600 on Thursday amid bullish sentiment following Donald Trump’s election victory.
- The Federal Reserve’s decision to cut interest rates by 25 basis points and signal further easing also boosted markets.
- Analysts say an influx of “cheap capital” could further support the bull market.
Bitcoin climbed for a third consecutive day, reaching a fresh record above $76,000. According to CoinGecko data, the flagship cryptocurrency peaked at $76,677 across major exchanges on November 7.
The surge followed BTC’s breach of a new all-time high above $75,000 on November 5, after news of Donald Trump’s victory in the U.S. presidential election. The top cryptocurrency pushed above $76,000 as reports confirmed Kamala Harris’s concession and President Joe Biden’s acknowledgment that he would hand over power to the incoming 47th president.
Bitcoin sets new ATH amid Fed rate cut
On November 7, Bitcoin hit a new all-time high above $76.6k after the Federal Reserve announced a 25 basis point rate cut. The Fed’s move, combined with the market reaction to Trump’s win, added positive momentum across risk assets. This latest cut follows a 50 bps reduction in September.
The rate decision reflects easing inflation readings and a cooling labor market. Markets have reacted positively to the Fed’s easing; the central bank’s action and comments from Chair Jerome Powell helped fuel optimism. Is “cheap capital” poised to flow into markets? That’s the view shared by investor and founder Anthony Pompliano.
BREAKING: The Federal Reserve has cut interest rates by 25 basis points.
Cheap capital is coming to the market.
— Anthony Pompliano 🌪 (@APompliano) November 7, 2024
BTC led a brief crypto rally, with Ethereum, Solana and BNB posting notable gains. ETH, for example, traded above the $2,880 mark after an intraday rise from $2,717.
SOL climbed into the top four by market capitalization after rising toward $198, overtaking BNB’s market cap which stood at about $92.8 billion. Meanwhile, BNB topped $600 for the first time since late October, reaching highs above $610. At the time of writing, BNB’s market capitalization was approximately $87.3 billion.