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A Historic Week in Crypto — And This is Just the Beginning

· Macro Analysis · Stormrake

  • BTC
  • LTC
  • NEAR
  • SEI
  • TIA
  • TRX
  • UNI

We predicted this week would be one for the history books! Bitcoin has surged to a new all-time high of $76,888, starting from $66,000 on Tuesday. Meanwhile, Donald Trump has won the U.S. election, altcoins are surging, and the U.S. has seen another a rate cut.

As anticipated, a 25 basis point (bps) rate cut occurred, bringing the U.S. interest rate to 4.5-4.75%. This aligns with Federal Reserve Chair Jerome Powell’s statements in the previous meeting, where he indicated plans for another 50 bps cut by year-end. This suggests we can expect one more 25 bps cut at the December meeting.

In his press conference, Powell covered several key topics. He suggested that the labor market is cooling, which could imply further cuts. He also stated that the election results would not impact the Fed’s policy and confirmed he wouldn’t resign if asked by Trump. Powell remains confident that inflation is progressing as planned, though he hasn’t ruled out an interest rate hike in 2025.

The next rate decision on December 18 aligns with the so-called "Santa Claus Rally." Markets often rally in the week leading up to Christmas, though some argue it extends into early January. Regardless, a potential rate cut and the anticipated rally could continue to drive Bitcoin upward. Historically, nine out of the past 14 Christmas seasons have shown positive returns for Bitcoin, a 64% success rate. Notably, four of the last five Christmas weeks have been positive—an 80% success rate. Given this trend, there’s a strong probability of a positive performance in the lead-up to Christmas. Bitcoin nearing $100,000 by then is a possibility, with these events potentially pushing it over the line before 2025.

If you feel underexposed or worry about missing out, now is a good time to bolster your Bitcoin position before the new all time highs are made. You’re still early, and if you have long-term confidence in the crypto space, this is an ideal time to enter. Contact your Stormrake Crypto Broker to seize these golden opportunities.