Bitcoin continues to hold at $76 thousand

Bitcoin rose on Friday, remaining near this week's record highs, as Donald Trump's victory in the 2024 election and the Federal Reserve's rate cut boosted optimism in the crypto markets.

Writes UNN with reference to Investing.

The world's largest cryptocurrency hit record levels this week amid optimism about more favorable regulation in the US during Trump's second presidency.

The Fed's interest rate cut on Thursday reinforced this growth, as the bank said that the US economy remains stable and plans to ease monetary policy further. Bitcoin rose by 1.4% to reach $76,029.0.

Earlier on Thursday, it hit a record high of $76,837.8 after Trump's victory sparked a surge in cryptocurrency markets. Bitcoin was at the center of this growth, as investors are counting on Trump to introduce more favorable regulation for cryptocurrencies, as he promised in his election campaign.

Trump has promised to make the United States the “crypto capital” of the world, although he has not disclosed details about the impact of his policy on the crypto industry. At the same time, crypto-optimists believe that his policy will add legitimacy to bitcoin as an investment asset, which will contribute to its popularity among institutional investors.

After the Fed cut interest rates by 25 basis points on Thursday, as expected, risk appetite increased significantly. Fed Chairman Jerome Powell emphasized that the US economy is in good condition and made it clear that the bank will continue to ease monetary policy, but with caution. He also noted that the Fed's policy rate remains stable despite short-term policy changes, but will be adjusted over time, taking into account long-term policy changes. These comments spurred growth in risky assets, with Wall Street indices hitting record highs on Thursday, and cryptocurrencies also gaining ground.

The longer-term outlook for interest rates remains uncertain, especially given that Trump is likely to pursue a more inflationary policy.

Cryptocurrencies experienced significant gains this week, with bitcoin up almost 10% and ether up 4.4% to $2,929.03 on Friday, reaching a weekly gain of over 15% - the best result since mid-May. Memecoin Dogecoin also posted double-digit growth for the second week in a row, up nearly 22%. Solana (SOL), the fourth largest cryptocurrency by market capitalization, surpassed $200 for the first time since April thanks to Trump's election victory.

 Recall

Following Donald Trump's victory in the 2024 U.S. presidential election, global financial markets responded with rapid growth, and the cryptocurrency sector showed a significant rise. Olena Sosiedka, co-founder of Ukraine's first fintech ecosystem, Соnсоrd Fintech Solutions , shared her thoughts with UNN on this impact, including on cryptocurrencies, stock markets, and international currencies.