Bitcoin hits all-time high after Trump’s victory

Bitcoin price hit an all-time high of $76,300 on Wednesday. If the BTC price declines, support can be found at $65,000, while resistance may be encountered at the psychological level of $77,000. 

Ethereum price surged to $2,740 on Wednesday. If Ethereum's price declines, it may encounter support near $2,300, while if it increases, resistance may be encountered near $2,820.

Crypto markets surged after the announcement of Donald Trump’s victory in the elections. Trump’s proposed tariffs and tax policies will support economic growth, boosting high-risk assets, such as cryptocurrencies. In addition, Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. 

Cryptocurrency prices are affected by central banks’ interest rates. High interest rates are restricting economic growth, putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. The US Federal Reserve performed a drastic rate cut of 50 basis points in September, bringing its interest rate down to a target range of 4.75% to 5.00%. 

The US Federal Reserve will announce its interest rate decision on November 7th and is expected to lower interest rates by 25 basis points this week. Market participants will focus on Fed Chair Jerome Powell’s press conference after the meeting for hints on the Fed’s rate outlook.

Concerns of a broadening conflict in the Middle East are promoting a risk aversion sentiment, lowering the appeal of high-risk assets such as cryptocurrencies. The conflict between Israel and Hamas continues to escalate, putting pressure on risk assets such as cryptocurrencies. 

In the past few weeks, markets had been bracing for Israel’s retaliatory attack against Iran. Israel’s attack over the weekend, however, did not inflict substantial damage. The Iranian government announced that there would be an appropriate response to Israel’s attack, but Iran’s President emphasized that they do not seek a war with Israel. On Thursday, however, a report stating that Iran plans an attack against Israel in the coming days from Iraqi soil, put pressure on crypto markets. In addition, Iran’s Supreme Leader Ayatollah Ali Khamenei threatened Israel with a crushing response on Saturday. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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