Bitcoin Rises Amid Optimism

Bitcoin rose on Friday, remaining close to record highs reached earlier in the week due to optimism about a potential Donald Trump victory in the 2024 presidential election and an interest rate cut by the Federal Reserve.

The world’s largest cryptocurrency surged to record highs this week, fueled by expectations of friendlier U.S. regulations during a second Trump presidency.

The Fed’s interest rate cut on Thursday supported this rally, as the bank indicated that the U.S. economy remains strong and monetary policy may be eased further.

Bitcoin Price Update

As of 00:20 ET (05:20 GMT), Bitcoin was up 1.6% to $75,980.3.

Trump Trade Impact

Bitcoin reached a record high of $76,837.8 on Thursday, remaining close to these peaks after Trump's victory ignited significant gains in crypto markets.

Market participants are hopeful that Trump will introduce more crypto-friendly regulations, as promised during his campaign. Trump stated his goal to establish the U.S. as the “crypto capital” of the world, although he did not clarify specific policies.

Crypto advocates believe Trump’s policies will enhance Bitcoin's legitimacy as an investment, boosting institutional funding, which in turn could elevate its adoption.

Federal Reserve Rate Cut Boosts Crypto

The risk appetite in the market was bolstered by the Fed's 25 basis point interest rate cut, widely anticipated on Thursday. Chair Jerome Powell commented that the U.S. economy is in a good position and indicated a cautious approach towards further easing of monetary policy.

Powell also mentioned that the Fed would remain consistent in its strategy despite potential political changes in the U.S. However, longer-term interest rates may become more unpredictable, especially with Trump likely to implement inflationary policies.

Crypto Market Performance

The cryptocurrency market is set to have an exceptional week, with Bitcoin trading up nearly 10%.

In addition, the second-largest cryptocurrency, Ether, increased by 2.8% to $2,916.48 on Friday and is poised for a more than 17% gain this week—its best performance since mid-May.

Memecoin Dogecoin was a significant performer, rising nearly 24% for the second consecutive week of double-digit gains.

Other altcoins like XRP, MATIC, ADA, and SOL saw increases ranging from 7% to 22% this week.