Bitcoin Soars Past $77K After Fed Rate Cut: All-Time High in Sight
The cryptocurrency market advanced further on the 7th in New York time based on the Trump trade and additional interest rate cuts by the Federal Reserve. Bitcoin reached a new all-time high during the New York time zone, and Ethereum and Cardano rose significantly.
The Federal Reserve cut its benchmark interest rate by an additional 25 basis points, as widely expected in the market, and said that the future trajectory of monetary policy will depend on upcoming data, forecasts, and risk balance. Federal Reserve Chairman Jerome Powell said at a press conference after issuing the policy statement that the election won by Trump would not affect the Fed’s decisions in the short term.
Some have expressed concern that inflationary pressures may strengthen again due to Trump’s pledge to increase tariffs and the expansion of the fiscal deficit, and that the Federal Reserve’s somewhat hawkish stance regarding its future policy line will have a negative impact on risk assets such as cryptocurrency and the stock market. I paid it.
The Fed’s statement and Powell’s press conference that day alleviated such concerns. The New York stock market continued its upward trend from the previous day. U.S. Treasury yields and the dollar index increased their decline compared to before the announcement of the Federal Reserve’s interest rate decision.
According to CoinDesk, LMAX Group market strategist Joel Krueger said in a market update on the day, “The market should pay attention to what could possibly be a stronger upward phase beyond Bitcoin’s all-time high.” “We are looking forward to the revival of the decentralized finance (DeFi) field, which is playing an important role.”
He added, “Bitcoin has finally surpassed $75,000, and Ethereum has returned above $2,800, setting the stage for a strong close to 2024 and a bright outlook for 2025.”
At 3:45 p.m. on the 7th, New York time, the cryptocurrency market capitalization on CoinMarketCap was $2.57 trillion, up 3.95% from 24 hours ago. Compared to before the New York stock market opened that day, it increased by $50 billion. The 24-hour trading volume of the cryptocurrency market decreased by 28.80% to $146.8 billion. Bitcoin dominance was calculated at 58.9%, and Ethereum dominance was calculated at 13.6%. Bitcoin dominance fell from the previous day, and Ethereum dominance rose. The fear and greed index of the cryptocurrency market is 70, indicating a state of greed.
At this time, Bitcoin rose 1.19% from 24 hours ago to $76,513 on CoinMarketCap. The highest point in New York time on this day was $76,943.12, a new all-time high. Ethereum advanced 8.03% to $2887. The highest point on this day was $2904.60. Ethereum’s all-time high is $4891.70 on November 16, 2021.
Other altcoins ranked in the top 10 by market cap show mixed trends compared to 24 hours ago. Solana rose 5.38%, BNB 2.31%, XRP 3.13%, and Cardano 11.27%. On the other hand, Dogecoin fell 0.35% and Tron fell 1.69%. Cardano has moved one step further to 9th in market cap, and Solana is targeting $200.
Cryptocurrency Futures Rise as US Dollar and Government Bond Yields Fall
Bitcoin futures listed on the Chicago Mercantile Exchange (CME) for November were up 0.67% at $77,390, December contracts rose 0.60% to $77,900, and January contracts advanced 0.49% to $78,455. Ethereum futures also saw significant gains, with the November contract advancing 7.57% to $2925.50, December contract rising 7.19% to $2936.00, and January contract increasing 6.32% to $2936.50.
These gains come as the US dollar weakened. According to Wall Street Journal data, the dollar index retreated 0.72% to 104.34. The yield on 10-year U.S. Treasury bonds also fell, dropping 10.5 basis points to 4.330%.
Bitcoin and Ethereum ETFs See Strong Inflows
Investors are showing continued interest in cryptocurrency investments. According to Farside Investors, there was a net inflow of $621.9 million into the Bitcoin spot ETF listed on the U.S. stock exchange the previous day (Wednesday). Ethereum ETFs also saw significant inflows, marking the highest net inflow since the end of September.Bitcoin ETFs saw significant net inflows on Tuesday, marking a shift in market sentiment after three consecutive days of decline. Fidelity led the charge with $308.8 million in inflows, followed by Grayscale Bitcoin Mini Trust (BTC) at $108.8 million and Bitwise at $100.9 million. However, BlackRock Bitcoin Trust (IBIT) experienced a second consecutive day of outflows, recording $69.1 million withdrawn.
Ethereum ETFs also witnessed positive momentum on Wednesday, with overall net inflows reaching $52.3 million, the highest since September 27th. Fidelity attracted $26.9 million in inflows, while Grayscale Ethereum Mini Trust (ETH) received $25.4 million.
The U.S. Federal Reserve implemented a second consecutive interest rate cut, reducing rates by 0.25%. This move has sparked speculation about the potential appeal of Ethereum staking and the possibility of Ethereum’s price exceeding 3,000.