30s Summary

After the US election was won by Donald Trump, Bitcoin hit a record price of $76,000. This is good news for riskier assets like Bitcoin, as the Federal Reserve is expected to make a 0.25% cut, meaning more money in circulation and a weaker dollar. Bitcoin’s value increased 6.6% within 24 hours of Trump’s election, boosting other token prices by 10%. However, concerns emerge that heavy-handed policies might suppress the volatility that enabled this growth.

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Bitcoin just smashed its all-time record, hitting $76,000 after Donald Trump won the election, which has really boosted market confidence. The financial world is expecting a 0.25% cut from the Federal Reserve, which is usually good news for riskier assets like Bitcoin because it means there is more money bouncing around and the dollar gets weaker. Apart from that, everyone’s watching the Federal Reserve to see what its next steps will be. They’ll especially be hanging on every word from the Fed’s main man, Jerome Powell. Although not everyone’s sure what’s gonna happen next, a lot of people are worried that too many heavy-handed policies could put a damper on the market’s buzz.

Bitcoin prices blew up to a whopping $76,000 late on Wednesday when it was confirmed that Republican candidate Donald Trump had won the American elections. People are calling this a golden age for digital currency. In the 24 hours after the announcement, Bitcoin’s value jumped by 6.6%, with its total worth going up by more than 21% over the last 30 days. Bitcoin’s winning streak has also boosted the price of everything from dog-themed tokens to those of decentralized exchanges by over 10%. This mirrors the rallies we’re seeing in the stock and bond markets, which are being dubbed the “Trump trade.”

Bitcoin has survived three election cycles since it was first created in 2009, and every time there’s been an election, its value has shot up to a new high. Adding to the good news for Bitcoin, the dollar surged 1.2% to its highest value since July. By making money more readily available, markets are hoping for stronger economic growth and more spending.

The money markets are now looking ahead to the next round of interest rate reductions from the Federal Reserve later this Thursday. Reducing interest rates usually spurs on the risk takers because it’s easier and cheaper to borrow money. Analysts are expecting a 0.25% reduction this week, which should be a good thing for assets like Bitcoin because it weakens the dollar’s value and encourages investors to look for alternatives.

But now everyone’s asking, what’s going to happen next? We know that Trump’s victory will probably lead to deficits and inflation. So Wall Street is going to scrutinize every word Powell says at his after-

reduction press conference to get some insight into the economy’s future. On top of that, traders are also keeping an eye on potential stimulus packages from China, who also love to meddle in the financial world by changing policies and introducing some crazy volatility that can really affect the strength of the dollar and interest rates. Meanwhile, some people are saying that we won’t see many more cuts to the interest rate during Trump’s term. Only time will tell, I guess.