Investing.com-- Bitcoin rose on Friday and remained close to record highs hit this week as a Donald Trump victory in the 2024 presidential election and an interest rate cut by the Federal Reserve kept crypto markets upbeat.
The world’s largest cryptocurrency rallied to record highs this week amid optimism over friendlier U.S. regulations during a second Trump presidency.
The Fed’s interest rate cut on Thursday added to this rally, as the bank signaled that the U.S. economy remained strong, and that it will likely ease monetary policy further.
Bitcoin rose 1.6% to $75,980.3 by 00:20 ET (05:20 GMT).
Bitcoin remains upbeat as Trump trade continues
Bitcoin surged to a record high of $76,837.8 on Thursday, and remained in sight of these peaks after Trump’s victory sparked sharp gains in crypto markets.
Bitcoin was at the forefront of these gains, as markets bet that Trump will roll out more crypto-friendly regulations, as promised by his campaign.
Trump had vowed to make the U.S. the “crypto capital” of the world, although he did not specify just what his policies would entail for the crypto industry.
Still, crypto bulls bet that Trump’s policies would give Bitcoin more legitimacy as an investment vehicle, boosting its adoption by institutional investors.
Fed rate cut adds to crypto gains
Risk appetite was furthered by the Fed cutting interest rates by 25 basis points, as widely expected, on Thursday.
Chair Jerome Powell said that the U.S. economy was in a good place, and signaled that the bank would continue to ease monetary policy, albeit cautiously.
Powell also said that the Fed’s path was unchanged in the face of near-term political changes in the U.S., but would adapt to changing policies in the long-term.
His comments spurred gains across most risk-driven assets, with Wall Street hitting a record high on Thursday. These gains also spilled over into crypto.
Still, the longer term outlook for interest rates was seen turning more uncertain, especially with Trump expected to enact more inflationary policies.
Crypto price today: Bitcoin, altcoins set for stellar weekly gains
Crypto prices were headed for a stellar week, with Bitcoin trading up nearly 10%.
World no.2 crypto Ether rose 2.8% to $2,916.48 on Friday, and was set for an over 17% gain this week- its best since mid-May.
Memecoin Dogecoin was a standout performer this week, up nearly 24% in its second consecutive week of double-digit gains.
Other altcoins, including XRP, MATIC, ADA and SOL, were up between 7% and 22% this week.