Bitcoin (BTC) broke $77,000 on Friday and hit another new all-time high, a day after the US Federal Reserve opted to cut interest rates again.
The Federal Open Market Committee (FOMC) voted this week to cut the Fed’s policy rate by a quarter of a percentage point, following a 50 basis point cut in September.
Fed Chairman Jerome Powell noted at a news conference on Thursday that inflation has fallen from a peak of 7% to 2.1% in September, although he said the Fed’s goal is still to reduce it even to 2 %.
“We view the risks to achieving our employment and inflation targets as roughly balanced, and we are alert to the risks to both sides of our mandate.
At today’s meeting, the committee decided to lower the target range for the federal funds rate by 1/4 percentage point, to 4-1/2 to 4-3/4 percent. This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move toward a more neutral stance over time.”
The 50 basis point rate cut in September was the Fed’s first rate cut since March 2020.
Bitcoin hit a new all-time high $77,239.75 on Friday. The top-ranked crypto asset rose in price for the first time earlier this week after former Republican candidate Donald Trump won the US presidential election. Trump campaigned on a pro-crypto agenda, despite previously expressing skepticism about digital assets.
BTC is trading at $76,523 at the time of writing.
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Featured image: Shutterstock/phanurak rubpol/gg_tsukahara