Bitcoin Surges Past $89,956 As Federal Reserves Cuts Interest Rates and Trump Wins 

Many cryptocurrencies rallied following the Federal Reserve interest rates cut by 50 basis points on 18 September. Bitcoin showed a strong uptrend that started on the 18^th.  After short-term consolidation, the bitcoin price surged past $60,000, then crossed the $62,000 price level at that time. 

Bitcoin, which is currently trading at $87,270 BTC/USDT, has dropped by 0.77% within a 24-hour period, but it still looks pretty strong. It has recorded new all-time highs (ATHs) following Donald Trump’s re-election as the 47th President of the United States of America. The following graph indicates Bitcoin’s price action on 13 November.

As it was visible on the 18 September graph, the Bitcoin price had surged from $59,212 to $62,508. It showed increasing bullish momentum after Fed Rate cuts. The Bitcoin bullish pressure is also evident on the current weekly price chart. It rose from $74,327.87 to $87,826.

Since September, the BTC price has received a proper push and risen by taking support on the trendline. It has displayed skyrocketing momentum after the breakout from the 8-month resistance level. 

The BTC coin price may take a small pullback before another bullish rally. It could trigger another bullish rally if it shows short-term profit booking and buyers bounce back. The current market sentiment is extremely bullish, so it could not be a good decision for a short position. 

Suppose BTC loses the $84K zone, buyers may lose momentum. Its price below that level could lead to profit booking. Once buyers panic and sellers start, all these gains might be wiped out in a few days or weeks. 

Ethereum Price Action 

Ethereum has taken the same price trajectory as Bitcoin, rising by 19.28% during the past  7 days to trade at $3,173 ETH/USDT at Gate.io. ETH is doing way better than its previous week’s trading price. Its future performance might also surprise many crypto enthusiasts. 

The Ethereum price has triggered a strong breakout from a parallel channel amid this bull run. It has reached the resistance zone of $3,400 and showing weakness. 

Since March, the ETH price has failed to reach the last swing high. It was in the lower high territory, which might attract sellers. Losing the $3,000 level could trigger bearish momentum and may drag down the price to the major support level of $2,250.

On the other hand, if the ETH price goes above the lower high territory, it could generate a buying signal. One more push in the Ethereum price can lead to a new all-time high.

In a 4-H time frame, the Ethereum price has been holding the recent support level of $3,140. If it defends it, a beautiful pullback can be seen. In a weekly time frame, the price has departed from the consolidation phase and is ready to perform.

Broader Altcoin Market Overview

Apart from ETH and Bitcoin, several altcoins have rallied since the announcement of the Fed rate cut and Trump’s victory. For example, the fourth-ranked altcoin rallied 6% within the last 7 days. 

However, the daily price chart shows that SOL is moving sideways, between $137.94 and $139. As of now, it has failed to breach the $139.80 key resistance level. 

Ripple (XRP) is another altcoin that has rallied within the past 7 days. It gained by 1.2% within that period to trade at $0.58. 

Shiba Inu is another altcoin performing well during this Bull Run 2024. For example, its price rose by {Please mention the percentage since 18 September} since Fed Rate Cuts announced. It also rose (please mention the percentage) in the past 7 days period. At the time of writing, traders can buy and sell it at 0.00001424. 

Generally, most meme coins are in green and have gained by large margins, as the next table shows.

As you note on the table, the coins have gained between 26.51% and 90.44% within the past 7 days. However, there are several meme coins whose prices have risen by larger margins. NEIRO, GOAT, ADA, AIOZ, ENA, and RENDER have remained bullish with more than 50% elevation. 

Effect of the Fed Rate Cut and Donald Trump’s Victory on Cryptocurrencies 

On 18 September, the Federal Reserve cut Fed funds rate by 50 basis points to 4.75%-5%. It was the first interest rate cut within the last four years. In a press release, the Federal Reserve said, “In light of the progress on inflation and the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5 percent. 

In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.” The Fed members anticipate the median benchmark rates to fall to 4.4% by year-end. To achieve that level, the Federal Open Market Committee (FOMC) should reduce the Fed Funds rate by another 50 basis points within the remaining months. 

The Federal Reserve’s recent monetary policy adjustment aims to mitigate the fear of a recession and stimulate economic growth. Notably, the fear of a recession in the United States has contributed to a depressed crypto market. However, the Fed interest rates cut has generated much optimism in the crypto market. That’s because a rate reduction increases liquidity and capital flow into risky assets like cryptocurrencies. Basically, lower interest rates promote borrowing since its cost decreases. 

Also, a dovish monetary policy leads to a weaker United States dollar. Normally, a weaker dollar results in higher demand for crypto assets such as bitcoin and ETH, viewed as a store of value. 

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