With the victory of crypto-friendly Donald Trump in the US presidential election, Bitcoin reached a new all-time high of $76,849 on Thursday.

Thursday saw the largest single-day influx of funds since the ETFs' inception in January, indicating a resumption of institutional interest.

Bitcoin bulls will benefit from Thursday's 25 basis point interest rate cut by the Federal Reserve.

Following the triumph of the crypto-friendly candidate Donald Trump in the US presidential election, Bitcoin (BTC) had a 10% spike this week, reaching a new high of $76,849 on Thursday.

This week, institutional demand surged once again, with over $1.30 billion pouring into US spot Bitcoin ETFs on Thursday—the largest single-day inflow since the introduction in January. In other news, the US Federal Reserve (Fed) cut interest rates by 25 basis points (bps) on Thursday, which is good news for Bitcoin bulls and could mean that the surge will continue.

Bitcoin reached a fresh record high after Donald Trump's election.
On Thursday, Bitcoin reached a new all-time high of $76,849, continuing a 10% weekly increase. Because of this, investors were even more optimistic when the market capitalization leader in cryptocurrencies went into price discovery mode. A lot of people think that the demonstration is because of how easily Donald Trump won the US presidency. The crypto community is feeling euphoric due to his pro-Bitcoin stance and suggested policies, which include doing away with taxes on Bitcoin transactions and setting up a strategic reserve.

Since its start in 2009, Bitcoin has gone through three election cycles. After each one, prices have rallied to new highs, and they have never dipped below their pre-election levels. The expert from QCP Capital is predicting that the current uptrend will continue well into 2025.



Institutional demand for Bitcoin has recently rebounded.
Coinglass data shows that US spot ETFs received $621.90 million on Wednesday, indicating that institutional demand for Bitcoin has recovered after a period of de-risking in the lead-up to the US presidential election. The ETFs' inception in January saw a total net inflow of $1.32 billion, with Thursday's $1.36 billion being the greatest single-day inflow. This influx pattern has the potential to give Bitcoin's current price surge some more juice if it continues or speeds up.


In addition, the weekly statistics from Glassnode show that capital inflow is still going up, which means there is new demand that isn't going away.

With a 3.8% gain in the past 30 days, Bitcoin's Realized Cap is at a level not seen since January 2023. Graph below shows that it has a net 30-day capital inflow of $2.5 billion, which has helped it trade at an ATH of $656 billion.

Bulls on Bitcoin benefit from Fed interest rate decrease


Thursday, the Federal Reserve cut interest rates by 25 basis points in an effort to keep policymakers' options open as they deal with a weakening job market and falling inflation. In the wake of a 50 basis point drop in September, the benchmark rate is now hovering around the 4.50%-4.75% area.

As a whole, the cryptocurrency market and Bitcoin have done better in times of historically low interest rates. Cryptocurrencies like Bitcoin experience price surges when borrowing costs are lowered. This is because investors have more purchasing power and would invest their money in assets instead of holding it in banks.

With Bitcoin, what is the maximum possible price increase?
After breaking above the downward-sloping parallel channel pattern in mid-October, the biggest cryptocurrency asset by market capitalization, Bitcoin, retested the breakout level at about $67,800, according to the weekly chart. At last week's all-time high of $73,777, Bitcoin had a rally that was met with rejection. It has continued its ascent this week, setting a new all-time high at $76,849 after previously breaking above it.

The technical aim of the pattern, which is determined by calculating the distance between the two trendlines and then extrapolating it higher, predicts a new all-time high (ATH) of $78,955 if Bitcoin's surge persists.

Bullish momentum is gaining steam, according to the Relative Strength Index (RSI) momentum indicator on the weekly chart, which is currently trading at 64, which is above its neutral threshold of 50 but still significantly below overbought circumstances.


Also, the daily chart shows that the bulls are leading, which could mean that we're in for more of a rally soon. A new all-time high of $76,849 was reached by the price of bitcoin, surpassing its previous ATH of $73,777, which was achieved in March. It is trading at approximately $76,000 as of this writing on Friday.

The 141.40% Fibonacci extension level, which is drawn from July's high of $70,079 to August's low of $49,072, is at $78,777, and it closely matches the technical target of the downward-sloping parallel channel pattern around $78,955 on the weekly chart. If Bitcoin continues its upward momentum, it could pave the way for a possible move toward this level.

On Wednesday's daily chart, the Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover, adding more support to Bitcoin's ascent. A purchase signal was given when the MACD line (blue line) crossed over the signal line (yellow line). On the other hand, the RSI is trending downwards at 70, which is close to the overbought level. For traders, a dip in the RSI from the overbought level increases the likelihood of a price drop, so they should exercise caution.



Bitcoin might fall much deeper to retest its psychologically significant milestone of $70,000 if it is unable to sustain its upward momentum and begins a pullback, closing below $73,777.

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