Bitcoin reached a fresh all-time high as the US Federal Reserve issued a positive 25 basis point (bps) interest rate decrease. Jerome Powell, the chair of the Fed, made it clear that the outcome of the election would not affect the rate reduction that are anticipated for the future.
Compared to the last September wave, these cutbacks are smaller. They remain optimistic about Bitcoin (BTC) and the larger cryptocurrency sector, though.
Bitcoin and Powell’s rate cut regime
The US Federal Reserve announced further 25 basis point (bps) interest rate decreases on Thursday. This aligns with Fed Chair Jerome Powell’s declared intentions to progressively lower rates in the upcoming months and corresponds to a target range of 4.5% to 4.75%. Prior rate reductions in September were a very positive indication for the cryptocurrency market.
Since Donald Trump’s presidential triumph, the price of bitcoin has already risen to a new all-time high, but this rate decrease might intensify optimistic emotions. In fact, Bitcoin reached a fresh all-time high of $76,800 on Thursday. But as of this writing, Bitcoin is trading around $75,800, having somewhat retraced.
General pundits were ecstatic when the news initially surfaced in the crypto world. According to Crypto Rover, the creator of the CryptoSea analytical tool, Bitcoin might reach $100,000 based alone on past rate-cut tendencies.
The idea that rate reduction would be overly cautious has also been the basis for pessimistic forecasts. Analysts cautioned in September that risky assets like Bitcoin might be harmed by perceived market volatility.
The asset exchange and liquidity provider Darkex Global predicted that Trump’s win may prevent further rate decreases or cause this kind of turmoil. Jerome Powell, the Fed Chair, spoke about this.
“The election will have no impact on our policy decisions. The economy is very difficult to forecast looking past the near term. We don’t guess, we don’t speculate, and we don’t assume,” Powell stated.
In other words, the Fed has not yet been persuaded that rate decreases should pause or stop by anything in the present political environment. Powell underlined his long-term objective of maintaining strong employment and gradually lowering US inflation. If the Fed is satisfied with the existing trend of modest, steady rate drops, Trump’s election won’t stop it.
Binance adds XRP and DOGE to smart arbitrage offerings, price rally is here
Binance’s addition of XRP and Dogecoin (DOGE) to its smart arbitrage products fueled speculation of a cryptocurrency price surge.
The biggest cryptocurrency exchange in the world, Binance, said on Friday that it has expanded its smart arbitrage capabilities to include Dogecoin (DOGE) and XRP. The inclusion of DOGE and XRP by Binance Earn generated intense speculation about an impending price increase. To commemorate the listings, the cryptocurrency exchange has also revealed a unique promotion with awards reaching 45,000 USDT.
Binance lists XRP and Dogecoin to smart arbitrage
On November 8, Binance made an official release announcing the addition of XRP and Dogecoin (DOGE) to its Smart Arbitrage products. Notably, a minimum investment of 12.5 USDT is required for consumers to begin using Dogecoin and XRP. It only supported Solana (SOL), Ethereum (ETH), and Bitcoin (BTC) up to this point.
By using a spot position to hedge their futures position and collect the funding fee, Smart Arbitrage takes advantage of the funding rate mechanism. By adopting opposing positions in the futures and spot markets, the technique mitigates the risk of price fluctuation. Consequently, a long position’s profit will balance a short position’s loss (or vice versa).
Additionally, in honor of the listings of Dogecoin (DOGE) and XRP, Binance has announced a special campaign with awards totaling 45,000 USDT. The deal runs through November 21 at 23:59 UTC.
According to the leading cryptocurrency exchange, throughout the offer time, customers may earn up to 20.95% APR. Additionally, 30,000 USDT in total rewards will be given out on a first-come, first-served basis.
“All users who opt-in to the Promotion and hold any Smart Arbitrage portfolio for more than 72 hours during the Promotion Period will receive a 10% Bonus APR on their first 1 – 2,500 USDT subscriptions, as per Binance.“
Additionally, a 45% trading fee refund is available to all regular and VIP 1-2 users who want to participate in the Smart Arbitrage portfolio campaign with a minimum balance of 10,000 USDT for a period of 72 hours.
Ripple’s token and DOGE price to rally
The coins saw upward momentum as investors were already optimistic about XRP and DOGE following Donald Trump’s victory. The good feeling is due to Elon Musk’s Department of Government Efficiency (D.O.G.E.) and the high probabilities for the introduction of the XRP ETF.
Given that XRP’s price surged 9% this week and is presently trading at $0.55, a 30x rise is anticipated. The 24-hour high is $0.560, while the 24-hour low is $0.542. Additionally, there has been a 37% drop in trading volume over the past day, which suggests that traders are becoming less interested.
on the meantime, DOGE’s price increased by 25% per week and 3% on the last day. With a 24-hour low and high of $0.186 and $0.199, respectively, the price is presently trading at $0.19. The price of Dogecoin is expected to reach $10 during this bull cycle.
Why is Cardano (ADA) price up today?
Thanks to many economic tailwinds and advantageous technicals, the price of ADA breaks the multimonth downtrend and reaches four-month highs.
As the market gained impetus after Donald Trump’s victory in the US 2024 Presidential Election, the price of Cardano (ADA) staged a strong recovery over the previous four days, jumping by more than 33.7% to hit an intraday $0.436 on Nov. 8.
The price of ADA has risen 28% over the past seven days and 17% over the past 24 hours, outpacing the rest of the market.
ADA price rises alongside Bitcoin, Ethereum
Thanks to Donald Trump’s victory in the US presidential election, cryptocurrency values increased generally, thus the optimistic feeling wasn’t limited to Cardano.
The biggest cryptocurrency by market capitalization, Bitcoin (BTC), drove the gains, rising 9.6% in the last week to reach a new all-time high of $76,943 on November 7, which includes gains of 12.7% since November 5. almost the last day, Ethereum (ETH) has increased by almost 3% to trade above $2,900.
Over the past several days, other top-cap cryptocurrencies have also reported notable increases, such as Dogecoin (DOGE), XRP, Solana (SOL), and BNB Chain’s (BNB).
At the time of writing, the entire value of the cryptocurrency market has grown by 2% in the past day and 14% in the last four days, reaching $2.57 trillion.
AP Race Call: Donald Trump is elected the 47th president of the U.S.
His win over Vice President Kamala Harris caps a historically tumultuous campaign that included two assassination attempts against him. https://t.co/vNyURdNHtn pic.twitter.com/QftQSSsDx9
— The Associated Press (@AP) November 6, 2024
Trump’s victory is seen as positive for the cryptocurrency market since he pledged to create a business climate that is conducive to cryptocurrency, which increased risk-on attitude.
The Federal Reserve’s decision to drop interest rates by 0.25% on November 7 has given the cryptocurrency market additional tailwinds in addition to the political ones. The Fed cites improving labor market conditions and growing confidence that inflation is steadily approaching the 2% objective.
SUMMARY OF FED DECISION (11/7/24):
1. Fed cuts interest rates by 25 bps in 2nd cut of 2024
2. Vote for 25 basis point rate cut was unanimous
3. Fed says risks to goals remain “roughly in balance”
4. Labor market conditions have “generally eased”
5. Fed removes “gaining…
— The Kobeissi Letter (@KobeissiLetter) November 7, 2024
In general, lower rates increase market liquidity and uphold asset values, fostering a risk-taking climate where investors, including cryptocurrency, look for larger rewards.
ADA sees a spike in funding rates
An increase in the open interest-weighted financing rate precedes the positive price movement of ADA on November 8. According to the graph below, on November 7, ADA’s 8-hour OI-weighted funding rate rose to 0.0159%, the highest level since June 2024.
Given that ADA’s price increased by almost 17% in the past day, this points to a strong interest for long positions.
As of the time of writing, the ADA rise on November 8 was accompanied by short liquidations of $1.67 million compared to $247,484 in long liquidations.
In other words, the increase in ADA to $0.438 took short sellers by surprise.
Cardano price more gains ahead
The gains made by Cardano (ADA) today are a part of a technical bounce that began on November 5. Notably, as shown below, the layer-1 token broke above its multimonth falling trendline resistance during the most recent surge.
The most recent of ADA’s unsuccessful efforts to break over this barrier was its 32%+ increase between September 6 and September 27, which was blocked by sellers at $0.42.
The April 22 range high of $0.52, a 19% increase from the present price, is the next reasonable objective for ADA bulls due to this technical setup.
