Bitcoin Nears $77,000 Following Fed’s 0.25% Rate Cut

By UnichLabs | UnichLabs | 9 Nov 2024


After the Federal Reserve’s decision to cut interest rates, Bitcoin—the world’s largest cryptocurrency—surged nearly 2%, reaching a new record high of over $76,943 per unit.

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The crypto market kicked off a fresh rally after breaking the short-term resistance level of $76,000. At approximately 3:15 AM today (equivalent to 3:15 PM local time yesterday), Bitcoin (BTC) hit over $76,943, marking a new peak. This represented an almost 2% increase compared to the previous session.

Bitcoin Price Chart

Although Bitcoin experienced a slight pullback due to profit-taking pressure, it managed to stay above the $76,000 threshold.

Simultaneously, numerous tokens saw significant gains. Ether rose by 8.5%, crossing the $2,940 mark. Solana, XRP, Toncoin, and Shiba Inu also reported increases ranging from 3% to 6%. The CoinDesk 20 index—which tracks the top 20 cryptocurrencies excluding stablecoins, exchange tokens, and meme coins—rose by 4.3% in the past 24 hours.

As anticipated by many financial analysts, the U.S. Federal Reserve reduced its benchmark interest rate by 25 basis points, bringing it down to the range of 4.5% to 4.75%. Fed officials noted that the U.S. job market has shown signs of easing, and inflation is nearing the 2% target. Economic activity has also continued to grow at a steady pace.

Related Article: German Authorities Transfer 450 Bitcoin to Exchange

The Fed reiterated its stance from two months ago, stating that the risks associated with the labor market and inflation are “roughly balanced.”

This latest move by the Fed reinforces the trend of monetary easing among other major economies. The Bank of England recently cut its rate by 25 basis points (0.25%), while Sweden lowered its base rate by half a percentage point (0.5%).

While the rate cuts have provided support to financial markets, a more optimistic signal for crypto investors came from Fed Chair Jerome Powell’s statement. This marked his first address since Donald Trump’s election victory, where Powell emphasized that the U.S. election results “have no impact” on the Fed’s short-term policy direction. This statement eased concerns that Trump might indirectly influence or shift the central bank’s monetary policy.

Previously, some observers had predicted that Trump’s policies—such as higher import tariffs, domestic tax cuts, or economic stimulus measures—could create new inflationary pressures, compelling the Fed to adopt a more cautious policy approach.

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UnichLabs
UnichLabs

Unich is a pioneering blockchain company that enhances freedom for individuals and communities. Our core product is a decentralized trading platform for the Crypto OTC Market


UnichLabs
UnichLabs

Unich is a pioneering blockchain company that enhances freedom for individuals and communities. Our core product is a decentralized trading platform for the Crypto OTC Market

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