"Federal Reserve Rate Cut Day", "Day After Trump Wins", the market is thriving.
Written by: Shaofaye123, Foresight News
Under the global financial market's spotlight, the Federal Reserve's latest interest rate decision has once again become a catalyst for market volatility.
In the early hours of November 8, after the Federal Reserve announced a 25 basis point cut in the benchmark interest rate, market confidence was further boosted, leading to a spectacular rally in both the cryptocurrency and U.S. stock markets.
Bitcoin leads the rise, while altcoins continue to increase.
The Federal Reserve's rate cut decision not only lowers borrowing costs but also injects a powerful stimulus into market liquidity. Additionally, the Bank of England has also adopted a similar accommodative monetary policy, cutting rates by 25 basis points to 4.75%, leading to a rise in British bond prices across the board. The Swedish central bank has also cut rates by 50 basis points for the first time in a decade, meeting expectations, and may increase its easing efforts to support the economy. All of these further consolidate expectations for global liquidity easing.
After the Federal Reserve announced its rate cut, Bitcoin's price briefly retraced to a low of $74,500 but quickly rebounded, nearing the historical high of $77,000. As of the time of writing, Bitcoin is trading at $75,869.
The altcoin market is also experiencing an upward trend, with Raydium (RAY) leading the top 200 tokens with a rise of 13.7%, followed by Cardano (ADA) and Neiro (NEIRO), which increased by 11.63% and 10.47%, respectively.
ETF data continues to flow in, and the market is expected to maintain its upward trend.
Bitcoin spot ETF data can provide insights into off-exchange fund movements. When there is significant net inflow, buying pressure increases, making a price increase for Bitcoin more likely. According to SoSoValue data, there have only been 4 days of net outflow in the past half-month, and the net outflow amount has been relatively small. In contrast, the net inflow on October 30 alone exceeded $890 million, and on the 29th, it reached $870 million. The net inflow on the 15th, 16th, 17th, and 28th all exceeded $450 million, indicating strong off-exchange purchasing power.
Additionally, it is noteworthy that the daily trading volume of BTC futures on the Chicago Mercantile Exchange has surged to a new high of $13.15 billion, far exceeding the average daily trading volume of $4.56 billion in 2024. Coinbase's premium has also turned positive for the first time in weeks. Demand from institutional traders is increasing.
BTC continues to flow out of exchanges, and stablecoin deposits are increasing.
BTC continues to flow out of exchanges, reaching the highest withdrawal level this year. This indicates a decrease in selling pressure, and the market is on the brink of an explosion.
In contrast to the outflow of BTC from exchanges, Coinbase and Binance have seen a significant increase in stablecoin deposits. Since September 2020 to February, a considerable amount of deposits and the rising trend can create a rebound. If a large number of deposits continue to show an upward trend, the cryptocurrency market is likely to see a new increase.
Analysts: After short-term consolidation, Bitcoin could reach $150,000.
According to trader analysis, strong spot demand and rising buying pressure reflect the market's shift towards sustained support. Daily chart data shows that larger sell orders are currently positioned between $77,000 and $78,000, with no significant selling pressure until $83,000.
Analysts expect Bitcoin may experience short-term consolidation, but some believe Bitcoin will continue to rise to $77,500 or even higher. CNBC reported that the BTC price could reach $100,000 before the presidential inauguration.
Long-term predictions from analysts like Peter Brandt suggest that Bitcoin is currently in the best position of its bull market halving cycle, with a peak expected between $130,000 and $150,000 by the end of 2024. Market analysts CryptosRus indicate that compared to previous cycles, Bitcoin could reach $100,000 by early 2025.
The Federal Reserve's interest rate decision has injected new vitality into the market, and the rebound trend is expected to continue.
