Fed Rate Cut Sends Bitcoin Price to New ATH at $76,700!

The Federal Reserve lowered its federal funds rate by 25 basis points today, bringing it down to a 4.5-4.75% target range. This Fed rate cut move comes after a period of steady rates, marking only the second rate cut in four years. The markets had been closely watching the Fed’s decision, and following the announcement, Bitcoin hit a record high of $76,766.

Fed Rate Cut & Election Saga

The decision aligns with recent political developments. President Donald Trump, who was re-elected in the recent election, has historically supported lower interest rates as a driver for economic growth. Though Trump has no direct role in Fed policymaking, his stance on economic matters reflects a clear preference for more accommodative monetary policy. His campaign often focused on the need for rate cuts to stimulate the economy, a view that resonates with today’s rate reduction.

Fed Chair Jerome Powell reinforced the central bank’s commitment to a target="_blank" rel="noopener nofollow">remarked, “Recent indicators suggest that economic activity has continued to expand at a solid pace, although labor market conditions have eased somewhat and inflation remains elevated.” This statement highlighted the Fed’s intent to balance growth with stability as inflation remains a concern, despite signs of an easing labor market.

Current economic data underscores the Fed’s cautious optimism. The Bureau of Labor Statistics recently reported unemployment at 4.1%, a figure expected to remain relatively stable. This resilience in the labor market bolstered the Fed’s outlook, as officials see it as an indicator of sustainable employment levels amid easing monetary policy.

Meanwhile, Trump’s position on Fed policy has been the subject of ongoing debate. He has voiced support for greater presidential influence over interest rate decisions, challenging the traditional independence of the Fed. Trump argues that “lower rates are vital for growth,” a position that found support in financial markets, which responded positively to today’s rate cut.

Bitcoin Price Surge

Earlier in the day, the Bitcoin was in the red despite an impeccable rally the last day. After the Fed rate cut announcement, the Bitcoin price touched a new high today before it fell back to the $76,600 level but still remained in the green.

At press time, the BTC price was up by 0.89% to $76,650.34 on Thursday, November 7. However, the 24-hour trading volume dropped by 43.32% to $64.76 billion due to the sluggish start in the beginning of the day.

Also Read: Bitcoin Fever Peaks! Can BTC Price Reach $80,000 by the Weekend?