Bitcoin soared to an all-time high of over $76,600 on Thursday amid bullish mood surrounding Donald Trump's election victory. The market was also boosted by the US Federal Reserve's decision to cut interest rates by 25 basis points (bp), signaling further tightening. Analysts say an influx of “cheap capital” could strengthen the bull market.
Bitcoin has risen for the third day in a row, hitting a new all-time high of over $76,000.
The flagship cryptocurrency hit a high of $76,677 on major exchanges on November 7, according to data from CoinGecko. This comes after BTC hit a new all-time high of over $75,000 on November 5th following the news that Donald Trump won the US presidential election.
The top cryptocurrency also rose above $76,000 after Kamala Harris conceded defeat and confirmed that US President Joe Biden will hand over power to the next 47th president. .
Bitcoin creates new ATH amid Fed interest rate cuts
On November 7th, Bitcoin price hit a new all-time high of over $76,600 after the Federal Reserve announced a 25 basis point interest rate cut. The news announced in the wake of President Trump's victory added to the positive buzz across risk asset markets.
This is the Fed's second interest rate cut, following a 50bps rate cut in September. The move comes as inflation data slows and the job market cools. Given the Fed's interest rate cuts and Chairman Jerome Powell's comments, the market is likely to move higher. Will “cheap capital” enter the market? Investor and entrepreneur Anthony Pompliano thinks so.
BREAKING NEWS: The Fed has cut interest rates by 25 basis points.
Cheap capital is flowing into the market.
— Anthony Pompliano 🌪 (@APompliano) November 7, 2024
BTC led the cryptocurrencies with a brief surge, while Ethereum, Solana, and BNB posted notable gains.
For example, ETH soared from $2,717 during the day to cross the $2,880 mark. After soaring to nearly $198, SOL moved into the top four by market cap, overturning BNB, which has a market cap of more than $92.8 billion.
Meanwhile, BNB hit a high above $610, surpassing $600 for the first time since late October. At the time of writing, the coin's market cap was $87.3 billion.
