Bitcoin rockets to $85,000 as Trump’s return and Fed rate cuts spark predictions of a $420,000 peak
The post Bitcoin rockets to $85,000 as Trump’s return and Fed rate cuts spark predictions of a $420,000 peak appeared on BitcoinEthereumNews.com.
As Bitcoin spikes to $85,000, could Federal Reserve cuts and Trump’s pro-crypto agenda drive it toward $420,000? What do experts say about Bitcoin’s future in this market? Bitcoin reaches a new all-time high On Nov. 11, Bitcoin (BTC) surpassed the $80,000 mark, reaching a new all-time high of nearly $85,000 after a nearly 25% surge within a week. BTC 6-months price chart | Source: TradingView Bitcoin’ gigantic rally aligns with recent monetary policy adjustments from the Federal Reserve, which reduced interest rates by 25 basis points in its November meeting, following a 50 bps cut in September, bringing U.S. interest rates into the 4.5-4.75% range. Lower interest rates generally translate to cheaper borrowing costs, potentially freeing up capital and encouraging investment, often benefiting risk assets like Bitcoin. Adding to the current bullish sentiment, the recent U.S. presidential election returned former President Donald Trump—known for his favorable stance on crypto—to office, further fueling market optimism. Despite this momentum, early November was marked by investor caution. Between Nov. 1 and Nov. 5, spot Bitcoin ETFs experienced outflows totaling nearly $715 million, screaming uncertainty around the election outcome. Following the election results, however, market confidence surged, leading to renewed inflows into Bitcoin ETFs. According to CoinGlass data, from Nov. 6 to Nov. 8, these funds collectively accumulated over $2.28 billion in assets under management. Meanwhile, Bitcoin’ market dominance—the share of the total crypto market cap held by BTC—has also seen fluctuations. As Bitcoin hit $75,000 last week, its dominance spiked above 60.5% before retreating to 58.5%. It has since rebounded, resting at 59.6% as of this writing. BTC dominance chart (2022-now) | Source: TradingView This ebb and flow in Bitcoin’s dominance could indicate growing interest in altcoins as capital rotates, potentially marking early signs of an approaching altcoin season even as Bitcoin climbs.…
Filed under: News - @ November 11, 2024 10:25 pm