Bitcoin (BTC-USD) has officially hit a fresh all-time high just shy of $77,000, driven in part by the U.S. Federal Reserve’s recent 0.25% interest rate cut. According to CoinTelegraph, Bitcoin’s price surged sharply during the Wall Street trading session on Nov. 8, marking a milestone moment for the cryptocurrency. According to Federal Reserve Chair Jerome Powell, recent economic indicators “suggest that economic activity has continued to expand at a solid pace.” This combination of steady economic growth and the Fed’s rate reduction appears to be a strong catalyst for Bitcoin’s continued climb.
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Interest Rate Cut Sets Stage for Bitcoin’s Rally
The Fed’s decision to reduce interest rates was widely anticipated and, according to the CME Group’s FedWatch Tool, there is a strong consensus for another cut in December. Powell’s remarks that “inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated” hint that further adjustments may be in the pipeline. Bitcoin, known for its appeal as a hedge against inflation, is likely benefiting from these conditions as traditional investors seek alternatives to fiat-based assets. As The Kobeissi Letter put it, if long-term inflation picks up, it could “put the Fed’s pivot at risk.”
High Leverage and Potential Long Squeeze Loom
While Bitcoin’s price momentum is encouraging, analysts warn of a “long squeeze” scenario—a risk of mass liquidation of long positions if the price suddenly reverses. Liquidity data from CoinGlass shows substantial “high leverage liquidity” building around Bitcoin’s spot price. Some traders, including CryptoMutant, have voiced caution, predicting a potential correction if Bitcoin dips below $72,600.
At the time of writing, Bitcoin is sitting at $76,426.22.
