The Federal Reserve cuts interest rates again! BTC rises to nearly $77,000, Powell: I won't resign.

The Fed cuts interest rates again, and BTC hits a new high!

The Federal Reserve (Fed) announced another 0.25 percentage point cut on November 7, lowering the target range for the federal funds Intrerest Rate to 4.5% to 4.75%. This is another easing of the monetary policy by the Fed after the 0.5 percentage point cut in September. This policy has triggered a positive response in the market, especially in the cryptocurrency market, with BTC soaring to $76,900 at one point on the same day, reaching a historic high. Analysts predict that with the continuation of the Fed's loose policy, it is not impossible for BTC to break through the $100,000 mark.

Source: TradingView BTC reached a new high of $76,900 after the Fed announced a rate cut.

On the same day, the Central Bank of the UK also followed suit with a 25 basis point interest rate cut, indicating that major global economies are gradually shifting towards loose monetary policies in the face of slowing inflation and economic risks. For risk assets, interest rate cuts usually stimulate capital inflows and stimulate price increases. Market observers point out that the interest rate cuts in the US and the UK will further open up liquidity cycles, accelerate capital inflows into the stock market and the encryption market, and help drive assets such as BTC to new highs.

Paul emphasized that sound economic policies are not influenced by elections and he will not resign during his term!

At the press conference after the policy meeting, Federal Reserve Chairman Jerome Powell faced questions from the media. When asked whether he might resign due to political pressure, Powell succinctly replied, 'No.' When further questioned about whether he would consider resigning at the request of President-elect Trump, Powell calmly stated that he would stay in office until the end of his term in 2026. This response is seen by the public as Powell's commitment to the independence and policy stability of the Federal Reserve, injecting confidence into the market.

Powell further pointed out that the current US economy is stable, the labor market, although slowing down, is still healthy, and the inflation rate is gradually moving towards the 2% target. He emphasized that policy adjustments will be made in a gradual and neutral manner to continue promoting the achievement of the inflation target, and further policy adjustments will be made when necessary. Powell's firm stance and patient approach make the market believe that the Federal Reserve will not change its policy direction due to election results or political pressure.

Source: The New York Times. Powell responded to media inquiries about stepping down, stating that he will stay until the end of his term in 2026.

US stocks and Taiwan stocks have positive reactions, continuing the optimistic upward trend.

With the announcement of the Federal Reserve's interest rate cut, the major indices of the US stock market all closed up. The S&P 500 and Nasdaq indices hit new highs, rising 0.74% and 1.51% respectively. The Dow Jones Industrial Average fell slightly by 0.59 points, almost flat. Technology and semiconductor stocks performed particularly well, with the Philadelphia Semiconductor Index rising 2.27%, indicating positive expectations for the interest rate cut policy in the market. Market analysis believes that as the policy gradually loosens, the drop in borrowing costs will encourage investment and further promote the rise in the stock market.

Driven by the US stock market, the Taiwan stock market also continued its optimistic sentiment. Today (Day 8), it opened with a big pump, with the Taiwan Weighted Index opening nearly 200 points higher at 23,608.11, reaching a high of 23,683.06 during the day. TSMC (2330) ADR rose by 4.12% to $201.19, driving up the weighted electronic stocks. Major electronic stocks such as Foxconn, MediaTek, Quanta, and Delta Electronics all recorded varying degrees of gains, reflecting investors' confidence in the trend of US stocks.

Interest rate cuts stimulate the encryption market, investors bullish BTC

After the results of the US presidential election were announced, the Cryptocurrency market showed a significant rising trend, especially BTC surged significantly after the interest rate cut announcement, with a weekly increase of 8%, and a cumulative increase of over 22% in the past month. Global investment firm VanEck predicts that if BTC gradually becomes a global reserve asset, the price is expected to reach 3 million US dollars by 2025. Market experts believe that the Fed's policy relaxation will help reduce borrowing costs and promote capital inflows into high-risk assets such as stocks and Crypto Assets.

On the other hand, Ethercoin and Solana ($SOL) also pumped due to the interest rate cut. According to CoinGecko data, Ethercoin reached $2,900 on that day, a new high since August; Solana pumped to $197, only $5 away from its all-time high. Overall, the change in US policy has brought great incentives to the cryptocurrency market, and the market value of cryptocurrencies has been growing since before the election, increasing by 13% to $2.5 trillion.

Source: TradingView Cryptocurrency Total Market Cap has reached $2.5 trillion.

The market is waiting to see the future direction of policies, encryption currency bull market is ready to go

Analysts pointed out that the Federal Reserve's policy statement at the November meeting appeared to be more cautious in assessing economic risks and did not express 'greater confidence' that inflation would stabilize back to 2%. The Fed is currently taking a 'meeting-by-meeting assessment' policy stance, which will be more flexible in response to future economic data. Dan Siluk, an analyst at investment firm Janus Henderson, said that such a change in wording shows that the Fed maintains an open attitude towards policy adjustments, especially the issue of whether inflation will continue to rise.

In this economic background, it is widely expected that the Federal Reserve may cut interest rates by another basis point at the December meeting to continue stimulating economic growth. Renowned cryptocurrency analyst Justin Bennett stated on the X platform that if risk assets can survive the current rate-cutting cycle, BTC may embark on further bull run, challenging the historical high of $100,000. Such prospects not only inspire the cryptocurrency market, but also fill many investors with anticipation for the future.

The latest interest rate cut by the Federal Reserve has further energized the US financial market and the global cryptocurrency market. Against the backdrop of a robust US labor market and gradually declining inflation, Powell emphasized the independence and stability of policies, excluding external pressures. The market expects this policy path to continue to impact high-risk assets, especially the prices of cryptocurrencies such as BTC. As the Federal Reserve moves towards a neutral policy stance, the bull market atmosphere in the encryption market is gradually forming.

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.