Bitcoin price at all-time high as Fed cuts interest rates by 25 basis points

At the first FOMC meeting after the US presidential election in November, the country’s central bank cut interest rates by 25 basis points, which was what the market and experts expected.

The price of Bitcoin, which is usually very susceptible to news related to the United States, was already at all-time highs of only $77,000 and remained relatively still.

It’s been an important week for the world’s largest economy, as the nation elected a new president on Tuesday, presenting a completely different direction for the next four years.

On Thursday, the Federal Reserve was scheduled to host its first FOMC meeting since September, when it cut key interest rates by 0.5%.

Most analysts and market pundits were expecting a more modest cut of 25 basis points at the November meeting, which is what Fed Chairman Jerome Powell announced a few minutes ago. Thus, the rates have been reduced to 4.5%-4.75%.

The central bank based its decision on the drop in inflation rates in the country and reaffirmed its goal of lowering it to 2% in the coming months.

With most pundits expecting such a move by the Fed, it appeared markets had already priced it in. As such, there is no big movement for bitcoin minutes after the decision is made.

The major cryptocurrency hit a new peak minutes ago at $76,800 (on Bitstamp), but has lost some traction and is now hovering around $76,100.

BTC exploded when Donald Trump took the lead in the presidential election earlier this week and broke its March all-time high as all roads began to point to his return to the White House. Bitcoin is currently up 8% for the week and over 22% over the past month. Its market capitalization is well over $1.5 trillion, making it the ninth largest global financial asset.

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