Bitcoin has reached a new all-time high, showing strong performance after Donald Trump’s victory in the U.S. presidential election. The cryptocurrency is currently up 2.3% in the last 24 hours, trading at $76,600, driven by market expectations of a 0.25% federal interest rate cut following the Federal Reserve’s meeting.
Not only Bitcoin but also other cryptocurrencies are performing well. The CoinDesk 20 index, which excludes stablecoins, exchange tokens, and memecoins, is up 4.3% in the last 24 hours. Ethereum’s ether (ETH) has surged 8% to nearly $2,870, breaking away from its previous price range.
Market strategist Joel Kruger mentioned that the resurgence in the decentralized finance space, with Ethereum playing a crucial role, could be a bullish development. He also highlighted the positive outlook for Bitcoin and Ethereum, with the potential for a strong finish in 2024 and a bright outlook in 2025.
Other cryptocurrencies have also seen gains, with Cardano’s ADA up 10.4% and Polygon’s POL rising 6.6%. Solana (SOL) is inching towards new highs, trading at $195, only 33% away from its 2021 all-time high.
In the equities market, Bitcoin mining firm Core Scientific (CORZ) surged over 11% after revealing its artificial intelligence ambitions during an earnings call. MicroStrategy (MSTR) reached a new 20-year high with a 5.8% gain, while Coinbase (COIN) saw a more modest 1.1% increase after a significant surge the day before.
These price movements occur ahead of the Federal Open Market Committee (FOMC) decision, where the Fed is expected to lower interest rates by 25 basis points. Fed Chair Jerome Powell’s press conference on policy and inflation, the first since Trump’s election victory, could introduce volatility in digital asset markets.
It will be interesting to see how the cryptocurrency market evolves post-FOMC meeting and the potential impact of the Fed’s decisions on digital assets. The performance of Bitcoin, Ethereum, and other cryptocurrencies in the coming days will likely be influenced by these macroeconomic factors and market sentiment. Investors and traders should stay vigilant and closely monitor developments in the cryptocurrency space.
