Bitcoin and Ethereum Surge Following Fed Rate Cut: Market Reactions and Predictions

Bitcoin reached a new all-time high, and Ethereum experienced significant gains as the Federal Reserve's recent quarter-point rate cut invigorated the cryptocurrency market on Thursday.

Cryptocurrency	Gains +/-	Price (as of 7:30 p.m. ET)
Bitcoin (BTC/USD)	+1.46%	$76,365.42
Ethereum (ETH/USD)	+8.52%	$2,938.85
Dogecoin (DOGE/USD)	-0.92%	$0.1943

What Transpired: The largest cryptocurrency, Bitcoin, achieved a historic peak at $76,872.61, just two days after setting new records coinciding with the U.S. presidential election.

Meanwhile, Ethereum surged past $2,900, marking its highest price in more than three months during a late-night rally.

Bitcoin's market dominance climbed above 60%, reflecting a 3.44 percentage point increase over the last 24 hours, and Ethereum also noted a slight boost in its market share.

Recent market trading saw around 89,458 investors liquidated, resulting in total liquidations estimated at $311.71 million. Traders heavily invested in short positions suffered losses amounting to $186 million during the rally.

The Open Interest for Bitcoin rose by 2.88%, indicating new investments flowing into the derivatives market.

However, Bitcoin's Relative Strength Index (RSI) indicated overbought conditions, which suggests the potential for a pullback. Additionally, the overall market sentiment shifted from "Extreme Greed" to "Greed," based on the Cryptocurrency Fear and Greed Index.

Top Gainers in 24-Hours

Cryptocurrency	Gains +/-	Price (as of 7:30 p.m. ET)
Raydium (RAY)	+14.24%	$4.82
Cardano (ADA)	+13.49%	$0.4133
Mantle (MNT)	+13.17%	$0.6774

The total value of the global cryptocurrency market reached $2.5 trillion after witnessing a slight decline of 0.57% in the past day.

In the stock market, gains persisted on Thursday, with the S&P 500 climbing 0.74% to achieve a new all-time high of 5,973.10, while the tech-focused Nasdaq Composite surged 1.51% to finish at 19,269.46, its first closing above 19,000.

Conversely, the Dow Jones Industrial Average remained steady, with a minor drop of 0.59 points, settling at 43,729.34.

This market uptick occurred following the Federal Reserve's decision to lower the federal funds rate by 0.25 percentage points, bringing it to a range of 4.5% to 4.75%, the lowest level since February 2023.

Fed Chair Jerome Powell suggested that more monetary easing could be on the horizon but did not commit to specific rate cuts during the upcoming December meeting, emphasizing a data-driven approach.

Analyst Predictions

Cryptocurrency analyst Ali Martinez opined that Bitcoin could achieve a local peak of $85,360 if it maintains support above $71,489, as indicated by the MVRV Deviation Pricing Bands.

Martinez also highlighted the potential emergence of an "altcoin season." He stated, "This might be the perfect moment to accumulate altcoins, as history shows that altseason typically follows strong Bitcoin performance."

He further remarked, "We are currently in a phase where #Bitcoin is outperforming #Ethereum, which is typical for this stage. This could be a strategic time to invest in altcoins, as they often follow Bitcoin's lead in the market cycles." View tweet

Another notable analyst, known as Wolf, labeled Ethereum as the "best" asset regarding risk and reward in the cryptocurrency space. "The fundamentals also appear strong, and technically, Ethereum looks incredibly undervalued, with the charts displaying a highly bullish outlook," he noted.

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Bitcoin, Ethereum, Market