Author: BitpushNews
On Thursday, financial markets once again staged a carnival, with assets such as cryptocurrencies, U.S. stocks and precious metals collectively soaring, stimulated by positive factors such as Trump's victory in the election and the Federal Reserve's interest rate cut.
Trump's re-election has given the market a shot in the arm. Investors seem to be generally optimistic about the future economic prospects of the United States, which in turn has driven a general rise in various asset classes.
At the same time, the Federal Reserve announced that it would cut the benchmark interest rate by 25 basis points, a move that further boosted market confidence. The rate cut not only reduces borrowing costs, but also increases liquidity in the market, which is undoubtedly a major positive for risky assets such as Bitcoin. In addition, the Bank of England has also adopted a similar loose monetary policy, passing a 25 basis point rate cut with an 8 to 1 vote, lowering the benchmark interest rate to 4.75%, further consolidating expectations of global liquidity easing.
At the close of the day, the S&P and Nasdaq rose 0.74% and 1.51% respectively, both setting new highs. The Dow Jones was flat and spot gold rebounded above $2,700.
Coinmarketcap data showed that Bitcoin pulled back to a low of $74,500 in early trading, but after the announcement of the rate cut, bulls gathered momentum and pushed the price to a record high of nearly $77,000 ($76,943.12). At press time, Bitcoin was trading at $76,065.98, up 0.6% in the past 24 hours.
The upward trend of altcoins continued. Among the top 200 tokens by market value, Arweave (AR) led the gains with a 13.21% increase, followed by Mantle (MNT) and Cardano (ADA), with increases of 11.8% and 10.7%, respectively.
The current overall market value of cryptocurrencies is $2.57 trillion, with Bitcoin accounting for 58.8% of the market share.
Multi-dimensional data suggests institutional enthusiasm and the rebound will continue
As a signal of increasing demand from institutional investors, daily trading volume for CME Bitcoin futures hit an all-time high of $13.15 billion on November 6. According to Vetle Lunde, head of research at K33, the average daily trading volume of CME Bitcoin futures in 2024 is currently $4.56 billion - even higher than the surge in trading volume during the FTX crash in early November 2022, and this milestone shows that institutional investors are becoming a larger and larger part of the market.
In addition, the Coinbase premium turned positive for the first time in weeks. Julio Moreno, head of research at CryptoQuant, said: "Trump's victory has brought back demand for Bitcoin among American investors, and the Coinbase premium has turned positive for the first time since October 18." As the largest cryptocurrency exchange in the United States, the Coinbase premium indicates increased buying interest, especially among institutional investors who use Coinbase for large transactions.
A large amount of funds have flowed into spot Bitcoin exchange-traded funds (ETFs) to help the bull market, and IBIT, a subsidiary of BlackRock, set a record for the largest single-day trading volume yesterday, reaching US$4.1 billion.
In the short term, the upper resistance is around $83,000
From the perspective of technical indicators, the TRDR.io daily chart data shows that from the perspective of the 2.5% depth of the order book structure, there is currently a large sell order area between US$77,000 and US$78,000, and then it seems to be smooth all the way (i.e. lack of obvious selling pressure) until US$83,000.
The Fibonacci extension tool currently predicts that the rally will extend to $82,367, which is in line with the 1.618 level.
Veteran trader Peter Brandt stressed on X that “Bitcoin is currently in the sweet spot of the bull halving cycle, and prices should reach the $130,000 to $150,000 range in August/September next year,” noting that he “measures cycles differently than most people.”
Market analyst CryptosRus said Bitcoin could reach $100,000 by early 2025, compared to previous cycles.
