Key Points
- Bitcoin hit a new ATH above $76,800 on November 7, fueled by multiple factors.
- The US Fed decided to cut interest rates by 25 bps, and BTC ETFs recorded top inflows at $1.35 billion.
Yesterday was a notable day for the US economy and the crypto markets as well. Bitcoin recorded a new ATH above $76,800, while US-based BTC ETFs saw their biggest inflow day since their January debut at $1.38 billion.
Also, the FOMC meeting delivered its decision that the US Fed will cut interest rates by 25 bps, an event that catalyzed Bitcoin’s bullish move upwards.
US Fed Cuts Interest Rates the 2nd Time Since 2020
Yesterday, the US Fed decided to cut interest rates by 25 bps, marking the second rate cut since 2020. The first rate cut was in September at 50 bps.
Yesterday’s rate cut brought the Fed fund target rate to 4.75%, which marks the lowest level since February 2023. Interest rate futures are also projecting another rate cut of 25 bps in December when the next FOMC meeting is scheduled to take place.
The US Fed is also projecting at least another 50 to 100 bps of rate cuts in 2025, as noted by The Kobeissi Letter in a recent post via X.
When the Fed cut rates in September, kicking off a new cycle of rate cutting, the decision triggered a price surge for Bitcoin, and the same thing happened yesterday, sending the coin to a new ATH.
Bitcoin Reached a New ATH Above $76,800
Yesterday, Bitcoin debuted a price rally from $74,000 levels ahead of the FOMC meeting, peaking at $76,850 and marking a new ATH for the digital asset.
At the moment of writing this article, BTC is trading above $75,000, up by 1% in the past 24 hours.
Its market cap reached $1.5 trillion, and this significant number places BTC as the 9th asset by market cap in the world, surpassing Meta.
Bitcoin’s latest price surge was fueled by multiple factors besides the recent Fed decision. The US election result which brought back Donald Trump at the US Presidency was the most important optimism trigger for the markets.
In 2024, Trump made many significant promises related to Bitcoin and the entire crypto industry which have gained him massive support from the community.
Another factor contributing to yesterday’s price rally is the biggest inflow day in history in US Bitcoin ETFs.
BTC ETFs Record Top Inflows Day at $1.38 Billion
On November 7, the US BTC ETFs saw their biggest inflow day since their January launch. The crypto products recorded $1.38 billion in inflows, sending the total net assets locked in the crypto products at $78.5 billion.
Also, the cumulative net flows in the BTC ETFs are nearing $25.5 billion since their launch, SoSoValue data reveals.
Yesterday also marked the biggest inflow day in BlackRock’s Bitcoin ETF, IBIT, which saw influxes of $1.12 billion. The cumulative net inflow in IBIT surpassed $27 billion as of November 7, and the total net assets in the crypto product were over $34 billion, according to SoSoValue.
Fidelity’s Bitcoin ETF, FBTC, recorded almost $191 million in inflows the other day, the second significant amount of influxes in the crypto products.
Overall there are plenty of reasons to remain optimistic for this Q4 of the year, and expect new heights for Bitcoin and the crypto market.
Bullish predictions suggest that soon, we could see BTC reaching $100,000, but it remains to be seen how soon this can happen.
