Bitcoin hits new ATH as Fed cuts interest rates by 25 bps

Bitcoin hits new ATH as Fed cuts interest rates by 25 bps

By Benson Toti - min read
Updated 28 November 2024
  • Bitcoin spiked to a new all-time high above $76,600 on Thursday amid bullish sentiment around Donald Trump’s election victory
  • The US Federal Reserve’s decision to cut interest rates by 25 basis points, indicating further tightening also buoyed markets
  • Analysts say the influx of ‘cheap capital’ could strengthen the bull market

Bitcoin rose for the third day to hit a new all-time high above $76,000.

Per data from CoinGecko, the flagship cryptocurrency touched highs of $76,677 across major exchanges on November 7. This comes after BTC broke to a new all-time high above $75k on November 5 with news of Donald Trump winning the US presidential election.

The top crypto also moved higher to break above $76k as Kamala Harris conceded defeat and as US president Joe Biden confirmed he’d hand over power to the incoming 47th president.

Bitcoin makes new ATH amid Fed interest rate cut

On November 7, Bitcoin made an all-time high above $76.6k as the US Federal Reserve announced a 25 basis points interest rate cut. The news coming on the back of Trump’s win added to the positive buzz across the risk asset markets.

The Fed’s rate cut is the second one after the 50 bps cut in September. The move follows slowing inflation data and a cooler jobs market. The crypto industry is likely to rally higher given the Fed’s rate cut and Chair Jerome Powell’s remarks.

According to investor and entrepreneur Anthony Pompliana, “cheap capital” is set to enter the market, as a result.

BTC led cryptocurrencies in a brief pump, with Ethereum, Solana, and BNB recording some notable gains.

ETH for instance crossed the $2,880 mark with an intraday surge from $2,717. SOL broke into the top four by market cap after surging to near $198, flipping BNB with its market cap above $92.8 billion.

Meanwhile, BNB crossed $600 for the first time since late October as it hit highs above $610. The coin’s market cap, as of writing, was $87.3 billion.