Bitcoin Remains Below $75K as Anticipated U.S. Rate Cut Approaches

The latest price moves in crypto markets on November 7, 2024, are set against the backdrop of Donald Trump's surprise election victory. His administration's anticipated policies may influence future interest rates, likely impacting cryptocurrency valuations.

Bitcoin is trading around $75,007.25, aiming to stay below the recent all-time high of nearly $76,500 achieved last Wednesday. Market analysts expect an upcoming 25 basis-point rate cut by the Federal Reserve, which could either bolster or hinder risk assets like cryptocurrencies. The CME's FedWatch tool indicates a nearly 100% probability of a benchmark rate drop, suggesting it may already be factored into market prices.

In the meantime, Bitcoin's recent rally aligns with significant ETF inflows, totaling $621.9 million, creating a buzz of optimism. Despite some net outflows in certain ETFs like BlackRock's IBIT, overall ETF activity remains robust.

Furthermore, Ether has seen a 7% surge in the last 24 hours, demonstrating stronger performance than the broader market, which recorded a 2.7% rise as per the CoinDesk 20 Index. Analysts attribute this momentum to potential shifts in the DeFi sector anticipated under Trump's administration.

"The DeFi Renaissance thesis is progressing as expected with Trump's deregulation and crypto-friendly policies being anticipated."

• Arthur Cheong, Co-founder of DeFiance Capital

Latest Prices:

• Bitcoin (BTC): $75,007.25 (+0.43%)
• Ether (ETH): $2,809.39 (+6.34%)
• S&P 500: 5,929.04 (+2.53%)
• Gold: $2,665.75 (-0.07%)
• Nikkei 225: 39,381.41 (-0.25%)

. This analysis outlines the tensions between market movements and economic policies as we anticipate the new phase in the cryptocurrency landscape.