Synopsis
The rally was driven by data showing U.S. consumer inflation increased to 2.6% in October, up from 2.4% in September, meeting market expectations. This supports the likelihood of a potential 25-basis-point rate cut next month, with market odds rising from 59% to 83%.
Bitcoin surged to a record high above $93,400, driven by market optimism over President-elect Donald Trump’s pro-crypto stance and expectations of further interest rate cuts by the Federal Reserve.
The rally was fuelled by data showing US consumer inflation rose to 2.6% in October, up from 2.4% in September, aligning with market expectations and strengthening the case for a potential 25-basis-point rate cut next month, with market odds rising from 59% to 83%.
Bitcoin was last down slightly at $89,960, but has risen nearly 32% since the November 5 election.
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TOP COIN SETSWeb3 Tracker21.27% BuyCrypto Blue Chip – 515.67% BuyAI Tracker13.83% BuyNFT & Metaverse Tracker9.58% BuyDeFi Tracker0.82% BuyTOP COINS (₹) Solana18,483 (6.6%)BuyBNB53,453 (4.76%)BuyBitcoin7,608,626 (3.83%)BuyEthereum272,483 (2.49%)BuyTether84 (-0.11%)BuyEthereum also witnessed a similar upward trajectory, gaining over 35% since Election Day, while Dogecoin soared by approximately 170%, boosted by endorsements from billionaire and Trump ally Elon Musk.
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View Details »Edul Patel, Co-founder and CEO of Mudrex, noted that both technical and fundamental indicators point to continued strength for Bitcoin. He highlighted the “Extreme Greed” signal on the Fear and Greed Index, suggesting strong bullish sentiment in the market. Patel also pointed out that over $850 million in options are positioned at the $100,000 level, underscoring trader confidence in the rally. “BTC faces its next resistance at $94,200, with support at $85,500,” he added.
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Also Read: Bitcoin prices up 30% since Trump victory. Is $100,000 mark on the cards next year?
The recent rally was also bolstered by MicroStrategy Inc.’s acquisition of 27,200 Bitcoin for $2.03 billion, its largest purchase since the company began its Bitcoin strategy over four years ago. The software firm, known for its significant Bitcoin investments, acquired these tokens between October 31 and November 10.
It was also a strong day for meme coins. Following their listings on Coinbase, both Pepe and Bonk saw substantial demand, with their prices rising by 30-50%. Additionally, Pnut, a new memecoin listed on Binance, saw a dramatic 250% plus price increase in just one day, according to CoinSwitch.
Avinash Shekhar, Co-founder & CEO of Pi42, suggested that the broader market rally is attracting investors to volatility and quick returns associated with meme coins. However, he cautioned that “the rapid price movements in this niche highlight the inherent risks, as these tokens can experience steep declines just as quickly as they rise.”
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
