Bitcoin Surges Above $76,000 in 2025 Ahead of Anticipated Fed Rate Cut
Bitcoin briefly climbed past $76,000 as investors eagerly await the U.S. Federal Reserve's upcoming interest rate cut, signaling potential bullish momentum for the cryptocurrency market.
Highlights
- Bitcoin reached a new all-time high, surpassing $76,000 for the first time in 2024.
- The Federal Reserve is expected to reduce interest rates, potentially driving further gains in Bitcoin's price.
- Spot Bitcoin ETFs experienced $621.9 million in inflows following the 2024 U.S. presidential election results.
Bitcoin (BTC) briefly surged above the $76,000 mark on Thursday as market participants anticipate the Federal Reserve's decision to cut interest rates. This rally reflects growing optimism following the recent U.S. presidential election outcomes.
On Wednesday, Bitcoin hit an all-time peak of $76,481, fueled by positive election sentiments. Although it experienced minor fluctuations in early Thursday trading, the cryptocurrency quickly rebounded, nearing its record high once again.
The Federal Reserve is projected to lower interest rates by 0.25% today. Historically, such rate cuts have positively influenced Bitcoin prices by reducing Treasury and bond yields, thereby making higher-risk assets like Bitcoin more appealing to investors.
Bitcoin ETF Inflows Surge Amid Election Optimism
Donald Trump's victory in the recent presidential election, coupled with promises of crypto-friendly regulations and a pro-crypto Congress, has bolstered Bitcoin's market appeal. This enthusiasm translated into robust inflows into spot Bitcoin exchange-traded funds (ETFs).
Following the election results, spot Bitcoin ETFs recorded net inflows of $621.9 million on Wednesday, as reported by Farside Investors. Nearly half of these investments went into the Fidelity Wise Origin Bitcoin Fund (FBTC), while BlackRock's iShares Bitcoin Trust (IBIT) experienced its first-ever two-day outflow streak.
Additionally, spot Ether (ETH) ETFs saw their fifth-largest inflow day with $52.3 million, though this remains modest compared to Bitcoin ETF inflows.
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