Author: BitpushNews
On Thursday, the financial markets once again celebrated, with assets such as cryptocurrencies, U.S. stocks, and precious metals collectively soaring, spurred by Trump's election win and the Federal Reserve's interest rate cut.
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 U.S., which has led to a broad rally across various asset classes.
Meanwhile, the Federal Reserve announced a 25 basis point cut to the benchmark interest rate, further boosting market confidence. The rate cut not only lowers borrowing costs but also increases liquidity in the market, which is undoubtedly a significant boon for risk assets like Bitcoin. Additionally, the Bank of England has also implemented a similar accommodative monetary policy, passing a 25 basis point rate cut proposal with an 8 to 1 vote, lowering the benchmark rate to 4.75%, further reinforcing 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 reaching new highs, while the Dow Jones index remained flat, and spot gold rebounded above $2,700.
Coinmarketcap data shows that Bitcoin retraced to a low of $74,500 in the early session, 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's trading price was $76,065.98, with a 24-hour increase of 0.6%.
The upward trend of altcoins continues, with Arweave (AR) leading among the top 200 tokens by market capitalization, up 13.21%, followed by Mantle (MNT) and Cardano (ADA), up 11.8% and 10.7%, respectively.
The current overall market capitalization of cryptocurrencies is $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 Chicago Mercantile Exchange (CME) Bitcoin futures daily trading volume reached an all-time high of $13.15 billion on November 6. According to K33 research director Vetle Lunde, the average daily trading volume for CME's 2024 Bitcoin futures is currently $4.56 billion— even higher than the surge in trading volume during the FTX collapse in early November 2022. This milestone indicates that institutional investors are increasingly gaining a foothold in the market.
Additionally, the Coinbase premium has turned positive for the first time in weeks, with CryptoQuant research director Julio Moreno stating: 'Trump's victory has reignited U.S. investor demand for Bitcoin, and the Coinbase premium has turned positive for the first time since October 18.' As the largest cryptocurrency exchange in the U.S., the Coinbase premium indicates increased buying interest, particularly among institutional investors making large trades using Coinbase.
A substantial influx of funds into spot Bitcoin exchange-traded funds (ETFs) is fueling the bull market, with BlackRock's IBIT setting a record for the largest daily 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's daily chart shows that from the order book structure at a depth of 2.5%, there is currently a large sell order zone located between $77,000 and $78,000, followed by seemingly clear sailing (i.e., a lack of significant sell pressure) until $83,000.
The Fibonacci extension tool currently predicts that the rally will extend to $82,367, which aligns with the 1.618 level.
Veteran trader Peter Brandt emphasized on the X platform, 'Bitcoin is currently in the best position of the bull market halving cycle, and prices should reach the range of $130,000 to $150,000 in August/September next year,' noting that his 'way of measuring cycles is different from most people's.'
Market analyst CryptosRus stated that Bitcoin could reach $100,000 by early 2025 compared to previous cycles.
