More

    Federal Reserve Slashes Interest Rates by 25 Basis Points, Sending Bitcoin Price Towards New ATH

    Crypto Market Today (Nov 6th, 2024): U.S Election Result Pushes Bitcoin to ATH!

    The post Federal Reserve Slashes Interest Rates by 25 Basis Points, Sending Bitcoin Price Towards New ATH appeared first on Coinpedia Fintech News

    As well as Trump’s victory, the crypto market recently received another big news as the Fed slashed interest rate by 25 bps. Bitcoin’s price, often highly responsive to US news, had already reached a record near $77,000 and remained relatively stable.

    Fed Goes Easy on Monetary Policy

    In line with market expectations, the U.S. Federal Reserve reduced its benchmark fed funds rate by 25 basis points to 4.5%-4.75% on Thursday, following other central banks’ moves to ease monetary policy. Amid market anticipation of the rate decision, Bitcoin soared to a new all-time high of $76,700.

    This reduction in rates comes after Donald Trump’s electoral win, consistent with his previous advocacy for lower interest rates to boost economic growth.

    While Trump does not have direct control over Fed policies, the rate cut is in line with his economic agenda and campaign pledges, where he often pushed for sharper reductions in interest rates.

    This rate cut breaks a years-long hiatus, marking only the second reduction in four years.

    The press release said, “Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2% objective but remains somewhat elevated.”

    Earlier today, the Bank of England reduced its rates by 25 basis points, and Sweden’s Riksbank decreased its key interest rates by half a percentage point. Following the FOMC’s decision, Bitcoin’s price hovered at approximately $76,718, its newly set all-time high, having risen 1.8% in the past 24 hours.

    Will Fed Maintain Rates?

    Investors are keenly focused on what Fed Chair Jerome Powell will say about the central bank’s future direction following Donald Trump’s decisive election victory in the U.S. The president-elect’s planned policies, including tax cuts, tariffs, and deregulation focused on boosting economic growth, could stoke inflation, leading the Fed to adopt a more conservative position.

    This could result in a slowdown, halt, or even a reversal of its recent rate cuts. Market sentiment has shifted accordingly, with the probability of the Fed maintaining current rates at the December meeting now at 35%, up from 14% a month ago, according to the CME FedWatch Tool.

    The recent news has been very positive for Bitcoin as it recorded robust gains in November. Bitcoin surged when Donald Trump pulled ahead in the presidential election earlier this week, surpassing its previous all-time high set in March as indications grew of his likely return to the White House.

    Currently, Bitcoin has risen 8% over the week and over 22% in the past month. With a market cap now exceeding $1.5 trillion, Bitcoin ranks as the ninth largest financial asset globally.

    Related articles

    Donald Trump Appoints Paul Atkin as New SEC Chair, Fact or Rumor?

    The post Donald Trump Appoints Paul Atkin as New SEC Chair, Fact or Rumor? appeared first on Coinpedia Fintech News As the cryptocurrency market experiences a price correction, several social media posts claim that President-elect...

    Time to Buy Cardano? $230M ADA Outflows Signal Bullish Rally

    The post Time to Buy Cardano? $230M ADA Outflows Signal Bullish Rally appeared first on Coinpedia Fintech News The recent election results have shifted overall market sentiment. Amid this, Cardano (ADA) along with other major...

    South Korea Martial Law Triggers Crypto Market Crash : Bitcoin and Altcoins Plunge

    The post South Korea Martial Law Triggers Crypto Market Crash : Bitcoin and Altcoins Plunge appeared first on Coinpedia Fintech News In the latest development, Cryptocurrency prices plunged and exchanges were paralyzed after South Korean...

    Stay Alert of Crypto Scammers in Holiday Season

    The post Stay Alert of Crypto Scammers in Holiday Season appeared first on Coinpedia Fintech News As the holiday season starts and people are busy shopping and enjoying themselves, scammers are getting busy as well....

    Bitcoin Price Analysis: Will BTC Break $98.7K or Fall to $90K?

    The post Bitcoin Price Analysis: Will BTC Break $98.7K or Fall to $90K? appeared first on Coinpedia Fintech News Bitcoin (BTC) price has failed to rally beyond the crucial threshold of around $98.7k in the...

    Latest articles

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here