Bitcoin (BTC) Maintains Resilience As Federal Reserve Cuts Interest Rate

The price of Bitcoin (BTC) continues to hold steady following the Federal Reserve’s decision to cut interest rates.

The world’s leading asset recently reached an All-Time High (ATH) on the heels of Donald Trump’s Presidential election victory. Currently, BTC is trading at over $75,700, anticipating a major rally.

The 25 Basis Interest Rate Cut

On Thursday, November 7, 2024, the US Federal Reserve announced a 25 basis points (bps) cut on interest rates. The Fed began the policy easing cycle with a 50 bps cut at its September 17-18 meeting.

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Federal Reserve Chairman Jerome Powell said the rate cut demonstrates policymakers’ commitment to sustaining a low unemployment rate amid easing.

The Fed’s decision to cut rates by 25 bps is based on recent economic indicators. Domestic output continues to stabilize, an outcome the Fed has sought since raising interest rates in 2022.

Additionally, the U.S. Bureau of Labor Statistics released payroll numbers for October, showing only 12,000 jobs added during the month.

At the same time, gains reported for the prior two months were further reduced. Last week, the Bureau of Economic Analysis (BEA) reported that GDP rose 2.8% in the third quarter.

While economic output returned to normal before March 2022, monetary policy has not. This scenario can be attributed to the Federal Reserve’s 25 bps rate cut decision.

Notably, Trump also supports a depreciation of the US dollar, pushing this narrative in his first term in office. He feels it will help drive demand for US-made goods and boost the domestic economy.

Lower rates mean dollars in circulation will grow, driving down the value. This should support more stability in economic growth but will underpin a steady rally in digital assets like Bitcoin.

Bitcoin Price and the Broader Market Outlook

As of this writing, BTC’s price was trading at $76,417, which is up 2.4% in the last 24 hours and 8.4% in the past week.

As a result, Bitcoin is now the ninth-largest asset in the world, with its market capitalization reaching approximately $1.5 trillion.

This feat enabled BTC to surpass the market valuation of Meta, Facebook’s parent company, valued at about $1.444 trillion.

The Bitcoin price surge coincides with fresh all-time highs for traditional indices like the Nasdaq and S&P 500. At the same time, the altcoins and memecoin markets are also riding Bitcoin’s bullish momentum.

Ethereum (ETH) has experienced a 7.6% increase in the last 24 hours, setting its price at $2,844. Furthermore, the price of Dogecoin (DOGE) increased by 1.4% daily to $0.195.

What Next for Bitcoin With Trump Presidency Ahead?

Bitcoin saw a major shift yesterday following Trump’s election victory. The Bitcoin rally is linked to Trump’s advocacy for less government intervention.

This means Trump’s administration will likely allow the market to determine how business is conducted. This doesn’t mean anything goes wrong, but there might be less oversight and investigations for the crypto industry.

A more friendly crypto environment can encourage more people to adopt Bitcoin. Eventually, this could lead to price surges for BTC. Many market participants believe BTC is on track to reach the $100,000 mark.