- Bitcoin surged above $77K after the Fed cut interest rates to 4.50%-4.75%.
- The Fed chair announced a 25 basis point interest rate cut after the FOMC meeting.
- Jerome Powell said the rate cut had nothing to do with Donald Trump’s election victory.
Bitcoin surged above $77,000 on Friday after the U.S. Federal Reserve announced a 25 basis point interest rate cut, lowering rates to a target range of 4.50%-4.75% to align with its monetary policy goals.
The decision added momentum to the ongoing crypto market rally, pushing BTC to a new all-time high of $77,270. While making the announcement, Fed chair Jerome Powell clarified that the interest rate cut had no connection to Trump’s election victory.
The Fed’s rate cut aligned with market expectations, injecting more liquidity into the U.S. financial system. Powell noted that the nation’s inflation is moving in the right direction, meeting its 2% target despite remaining elevated.
Other countries also adjusted their interest rates. The Bank of England (BoE) cut its rates by 25 basis points, while Sweden’s Riksbank made a larger reduction of 50 basis points.
Notably, these developments, especially that of the U.S., supported the dominant narrative among crypto users and boosted the bullish sentiment in the overall crypto market. Apart from Bitcoin, several other top cryptocurrencies surged following the Fed’s interest rates decision announcement.
Ethereum, the largest cryptocurrency by market capitalization, surged upwards after breaking above significant resistance in the wake of Trump’s election victory. ETH’s recent rally saw the altcoin climb above $3,000 for the first time since the beginning of August. At the time of writing, Ethereum traded for $3,035, reflecting a 25% surge since the rally started on November 6.
Read also: Bitcoin Price Forecast: $130k-$150k Target According to Analyst
Solana (SOL), one of the best-performing cryptocurrencies in the current cycle, continued its impressive move by climbing above $200 for the first time since Q1 2024. The altcoin surged to $205 after Powell’s interest rates announcement. Crypto analysts consider the move significant, as the $200 region represents a notable resistance for SOL. Most analysts predict the rally will continue until Solana achieves a new all-time high and break its previous record of $260, a target it achieved in Q4 2021.
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