The Federal Reserve announced a 25 basis point cut in the benchmark interest rate, further boosting market confidence.
Written by: BitpushNews
On Thursday, the financial markets experienced a carnival atmosphere again, driven by the positive factors of Trump winning the election and the Federal Reserve cutting interest rates, leading to a collective surge in cryptocurrencies, US stocks, and precious metals.
Trump's reelection has injected a strong dose of confidence into the market, and investors seem generally optimistic about the future economic prospects of the United States, leading to a broad rise in various asset classes.
Meanwhile, the Federal Reserve announced a 25 basis point cut in the benchmark interest rate, further boosting market confidence. The rate cut not only reduces borrowing costs but also increases liquidity in the market, which is undoubtedly a significant positive for risk assets like Bitcoin. Additionally, the Bank of England has also adopted similar easing monetary policies, passing a 25 basis point rate cut proposal with a vote of 8 to 1, lowering the benchmark rate to 4.75%, further solidifying expectations of global liquidity easing.
At the close of the day, the S&P 500 and Nasdaq indices rose by 0.74% and 1.51%, respectively, both hitting new highs, while the Dow Jones index remained flat, and spot gold rebounded above $2,700.
Coinmarketcap data shows that Bitcoin pulled back to a low of $74,500 in the early morning, but after the interest rate cut announcement, bulls pushed the price close to the historical high of nearly $77,000 ($76,943.12). As of the time of writing, Bitcoin was trading at $76,065.98, with a 24-hour increase of 0.6%.
The uptrend in altcoins continues, with Arweave (AR) leading the top 200 tokens by market cap, rising by 13.21%, followed by Mantle (MNT) and Cardano (ADA), which rose by 11.8% and 10.7%, respectively.
The total market capitalization of cryptocurrencies is currently $2.57 trillion, with Bitcoin's market share at 58.8%.
Multidimensional data suggests institutional enthusiasm, and the rebound will continue.
As a signal of increased institutional investor demand, the daily trading volume of Bitcoin futures on the Chicago Mercantile Exchange (CME) reached a historical high of $13.15 billion on November 6. According to K33 research director Vetle Lunde, the average daily trading volume of CME Bitcoin futures for 2024 is currently $4.56 billion—higher than the spike in trading volume during the FTX collapse in early November 2022. This milestone indicates that the proportion of institutional investors in the market is growing.
Additionally, the Coinbase premium has turned positive for the first time in weeks. CryptoQuant research director Julio Moreno stated, 'Trump's victory has rekindled the demand for Bitcoin among American investors, and the Coinbase premium has turned positive for the first time since October 18.' As the largest cryptocurrency exchange in the United States, the Coinbase premium indicates increased buying interest, especially among institutional investors making large trades using Coinbase.
A large influx of funds into spot Bitcoin exchange-traded funds (ETFs) is fueling the bull market, with BlackRock's IBIT achieving its highest single-day trading volume yesterday, reaching $4.1 billion.
In the short term, the upper resistance level is around $83,000.
From a technical indicator perspective, TRDR.io daily chart data shows that there is currently a large sell order area in the order book structure from a 2.5% depth located between $77,000 and $78,000, followed by what seems to be a clear path (i.e., lack of significant selling pressure) until $83,000.
The Fibonacci extension tool currently predicts that the rally will extend to $82,367, aligning with the 1.618 level.
Veteran trader Peter Brandt emphasized on the X platform, 'Bitcoin is currently in the best position during the bull market halving cycle. Prices should reach the range of $130,000 to $150,000 by August/September of next year,' and noted that his 'way of measuring cycles is different from most people.'
Market analyst CryptosRus stated that Bitcoin could reach $100,000 by early 2025, compared to previous cycles.
