The Fed cut interest rates again to fuel the market, and BTC once approached $77,000

Bitpush

24-11-08 10:56

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Original title: "Fed's rate cut adds fuel to the market, BTC once approached $77,000"

Original source: BitpushNews

On Thursday, the financial market staged another carnival feast. Stimulated by favorable factors such as Trump's victory in the election and the Fed's rate cut, assets such as cryptocurrencies, US stocks and precious metals collectively soared.

Trump's re-election has injected a shot in the arm for the market. Investors seem to be generally optimistic about the future economic prospects of the United States, which in turn has driven a general rise in various asset classes.

At the same time, the Federal Reserve announced a 25 basis point cut in the benchmark interest rate, a move that further boosted market confidence. The rate cut not only reduces borrowing costs, but also adds liquidity to the market, which is undoubtedly a major positive for risky assets such as Bitcoin. In addition, the Bank of England also adopted a similar loose monetary policy, voting 8 to 1 to approve a 25 basis point rate cut, lowering the benchmark rate to 4.75%, further consolidating expectations of global liquidity easing.

At the close of the day, the S&P and Nasdaq rose 0.74% and 1.51% respectively, both hitting new highs, the Dow Jones was flat, and spot gold rebounded above $2,700.

Bitcoin pulled back to a low of $74,500 in early trading, but after the rate cut announcement, bulls pushed the price to a record high of nearly $77,000 ($76,943.12), according to Coinmarketcap data. At press time, Bitcoin was trading at $76,065.98, up 0.6% in 24 hours.

The upward trend of altcoins continued. Among the top 200 tokens by market value, Arweave (AR) led the gains with a 13.21% increase, followed by Mantle (MNT) and Cardano (ADA), with increases of 11.8% and 10.7% respectively.

The current overall market value of cryptocurrencies is $2.57 trillion, and Bitcoin has a market share of 58.8%.

Multi-dimensional data suggests institutional enthusiasm, and the rebound will continue

As a signal of increased demand from institutional investors, the daily trading volume of Chicago Mercantile Exchange (CME) Bitcoin futures hit a record high of $13.15 billion on November 6. According to Vetle Lunde, head of research at K33, average daily volume for CME’s 2024 Bitcoin futures is now $4.56 billion — even higher than the surge in volume during the FTX crash in early November 2022, a milestone that suggests institutional investors are taking a growing role in the market.

In addition, the Coinbase premium turned positive for the first time in weeks. Julio Moreno, head of research at CryptoQuant, said: "Trump's victory has brought back the demand for Bitcoin among American investors. 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 who use Coinbase for large transactions.

A large amount of funds flowing into spot Bitcoin exchange-traded funds (ETFs) has boosted the bull market. BlackRock's IBIT recorded its largest single-day trading volume yesterday, reaching $4.1 billion.

In the short term, the upper resistance is around $83,000

From a technical perspective, the TRDR.io daily chart data shows that from the 2.5% depth of the order book structure, there is currently a large sell order area between $77,000 and $78,000, followed by a seemingly smooth all the way (i.e. lack of obvious selling pressure) until $83,000.

The Fibonacci extension tool currently predicts that the rally will extend to $82,367, which is consistent with the 1.618 level.

Veteran trader Peter Brandt stressed on the X platform that “Bitcoin is currently in the sweet spot of the bull halving cycle, and prices should reach the $130,000 to $150,000 range in August/September next year,” noting that he “measures cycles differently than most people.”