The market is shaken as Bitcoin breaks records, reaching USD 76,849.99 after decisions by the FED.
The world's leading cryptocurrency achieved a new milestone by reaching a historic price of USD 76,849.99. This rise in bitcoin coincides with the recent decision of the United States Federal Reserve (FED) to cut interest rates by 25 basis points, placing them between 4.5% and 4.75%. The measure increases the attractiveness of cryptocurrencies, which are quoted in dollars, compared to the US currency.
Bitcoin hits a new all-time high driven by Federal Reserve policies. / TradingView
Impact on Bitcoin of the Fed rate cut
The Federal Reserve announced the reduction of its interest rates after evaluating that economic activity continues to expand. In addition, inflation remains high, although it is moving towards its 2% target. This adjustment reduces the attractiveness of the dollar and encourages demand for assets such as Bitcoin. Markets are also anticipating a possible further rate cut at the upcoming FOMC meeting on December 18, which could continue to benefit cryptocurrencies.
Bitcoin Technical Analysis
Bitcoin technical analysis shows a clear bullish trend on the medium-term or weekly chart. The cryptocurrency broke through the historical resistance of $73,777, reflecting a sustained growth trajectory. Bitcoin broke out of a bearish channel forming a flag pattern, suggesting a possible continuation of growth. However, trading volume remains low, indicating moderate interest from investors.
Market Outlook and Expectations
The market is keeping a close watch on the FED's moves, with 71.3% of futures participants betting on another rate cut. Two-year Treasury bonds fell to 4.18%, in line with market expectations. This situation could continue to benefit bitcoin and other digital assets, which act as a counterpart to the dollar.
Bitcoin's growth in the current context underlines its role as a safe haven from expansionary monetary policies. However, low trading volume highlights a potential challenge to its medium-term sustainability.
Disclaimer: This news does not constitute financial advice. Invest according to your own criteria and after conducting adequate research.