Bitcoin Soars to $93,400 Amid Trump Excitement and Fed Influence
Bitcoin continues to set new records with the crypto-friendly stance of U.S. President-elect Donald Trump and expectations of Fed rate cuts.
The largest cryptocurrency rose to $93,423 last night, marking an all-time high. This increase followed the rise in U.S. consumer inflation data from 2.4% in September to 2.6% in October, raising expectations for the next rate cut in the markets. During the rally, the market's expectation for a rate cut climbed from 59% to 83%, and Bitcoin benefitted from this trend, reaching a 32% increase since the November 5 elections. However, following the new record, Bitcoin experienced a slight pullback to around $89,500 in the morning. Similarly, Ethereum recorded an increase of over 35%. Notably, Dogecoin surged by 170% during this process, bolstered by support from Elon Musk.
Novogratz: "The likelihood of Bitcoin being a strategic reserve during Trump’s term is low."
While the positive sentiment in the crypto markets persists, a comment urging caution came from Galaxy Digital CEO Michael Novogratz. Novogratz expressed skepticism about President-elect Donald Trump's potential consideration of Bitcoin as a strategic reserve. He stated that although Republicans control the Senate, they do not have enough seats, making the implementation of such a strategy challenging. Novogratz predicts that if such a move occurs, Bitcoin could reach a valuation of $500,000, but he considers the likelihood of this happening soon to be low.
Novogratz further believes it would be wise for the U.S. to position itself as a leading country in digital assets and technologies. However, he argues that the current state of the dollar does not necessitate support for such a move. Noting the expected conflict among different branches of the government regarding this issue, Novogratz suggests that such an initiative could face obstacles within the institutional framework in Washington.
With these assessments, Novogratz thinks that if the U.S. government were to consider Bitcoin as a strategic reserve, it could have a massive impact on the global cryptocurrency markets. However, he reminds that political and economic challenges exist and highlights that it is inevitable for investors to be influenced by such speculations. Novogratz also added that these types of strategic shifts could play a significant role in shaping the future economic policies of the world.