Bitcoin Stabilizes Above $76,000 After Fed Rate Cut
Date: 2024-11-08 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
On November 7, the US Federal Reserve System (FRS) decided to cut the key interest rate by 0.25%, setting a new range of 4.5-4.75% per annum. This is the second rate cut in recent months, the first of which occurred in September, when the indicator decreased by 0.5%. This move is fully in line with market expectations and analysts' forecasts.
The statement of the Federal Open Market Committee emphasizes the desire to achieve full employment and long-term inflation of 2%. Fed representatives noted that the economic situation remains unstable and requires constant monitoring of factors that may affect the implementation of these goals.
Against the backdrop of the decision, Bitcoin continued to hold above $76,000, demonstrating resistance to fluctuations. Large altcoins also showed stable results after recent growth. At the time of publication, the total market capitalization of the cryptocurrency market is approximately $2.68 trillion.
The further dynamics of cryptocurrencies and other risky assets will depend on the speech of the head of the Federal Reserve, Jerome Powell, scheduled for the evening of November 7. His statements may influence the expectations of market participants regarding the further monetary policy of the United States.
The Wall Street Journal notes that a possible victory of Donald Trump in the presidential election may lead to a revision of the current Fed policy. This may happen at the December meeting, where updated macroeconomic forecasts will also be presented. At the current meeting, Powell is likely to refrain from direct signals regarding possible policy changes in the event of a change in the head of state.
Amid these events, options traders have increased bets on increased volatility of Bitcoin after the US elections, assuming possible price fluctuations of the first cryptocurrency depending on the election results and related decisions of financial regulators.
