5 min readBitcoin is holding steady today at around 75k, modestly down from the all-time high of 76,180 reached yesterday after Donald Trump’s victory in the 2024 U.S. presidential election. While bitcoin’s rally has calmed, other major altcoins have extended recent gains.
The surge in Bitcoin came after Trump won the US election and his Republican Party won the Senate and are making gains in the House of Representatives. This could result in a Red sweep, giving Trump a strong platform and significant authority to push through his agenda.
Owing to his pro-crypto stance throughout the election campaign, the crypto sector is optimistic that Trump will introduce friendlier regulation and give Bitcoin more credibility.
Trump’s quick victory also removed uncertainty that had been hanging over the markets for several weeks, sparking a rally in risk assets. US stock indices also reached record highs on Wednesday. However, the rally is now cooling, and attention is turning to the Federal Reserve’s interest rate decision later today.
Fed to cut rates by 25bps
The Fed is expected to cut interest rates by 25 basis points, which is priced in, so the focus will be on what comes next. The market is currently pricing in a 70% probability of the Fed cutting rates again in December. However, in light of Trump’s victory and expectations of an expansive, inflationary agenda, the Fed may cut interest rates more gradually in the future. A lower interest rate environment is more beneficial for risky assets.
Ether surges 13% this week.
While Bitcoin has steadied, Ether continues to power higher. Ether is on track to deliver its best weekly performance since May, with the price up 13% so far this week and rising to a three-month high.
In addition to the broad-based boost to crypto, ETH is finding support because Trump also holds 495 ETH in his private wallet, according to data from Arkham Intelligence. This level of investment from such a high-profile figure (the new President!) is lifting market sentiment toward the token.
Adding to the upbeat mood towards Ether was the revelation of Michigan State Retirement System’s investment in spot Ether ETFs. As of September 30th, the fund reportedly holds 460,000 shares of the Grayscale Ethereum fund, which equates to around $10 million. This contrasts with the $7 million allocated to the spot Bitcoin ETFs, suggesting more confidence in Ethereum’s outlook and utility profile over Bitcoin’s.
Institutional investments are beneficial and help the asset’s long-term growth prospects, as well as aiding market stability.
Where next for ETH/USD?
ETH/USD has broken out of its falling channel dating back to May, exposing the 200 SMA at 2960 and 3000 psychological level as the next targets.
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