Bitcoin Surges To 76,800 As Fed Cuts Interest Rate

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• Bitcoin registered a fresh all-time high after the Federal Reserve announced the reduction of key interest rates by 25 basis points, following through on its decision to cut the benchmark rate by 50 BPS in September.
• BTC was trading at a peak of 76,800 on Thursday after Fed chairman Jerome Powell said he feels the central bank's decision could help the US economy recover from the slowed labor market and rising inflation.
• The broader crypto market was in the green as major altcoins Ethereum ETH and Solana SOL rose 7.3 and 3.5, respectively.
• While many attribute the Fed's decision to reduce interest rates to optimism surrounding a Trump presidency, the central bank has clarified that it has nothing to do with the current political climate in the country.

The Federal Reserve has reduced the key interest rate by 25 basis points, a decision designed to effectively navigate the slowing labor market and decrease inflation rates in the United States.

Thursday's rate cuts have brought the benchmark rate to between 4.50 and 4.75 and is consistent with Fed chairman Jerome Powell's plans to gradually reduce the rates over coming months. The central bank cut interest rates by 50 BPS in September, which proved to be a highly bullish signal for the crypto industry.

Bitcoin Comes Ever Close to 77,000 After Fed Announced Fresh Rate Cuts

Bitcoin, the price of which had already reached a new all-time high following Donald Trump's election victory, was the biggest benefactor of the rate cut. As soon as the Fed announced its decision, BTC made a move to record yet another new all-time high at 76,800.

After the Federal Open Market Committee FOMC meeting, Powell held a press conference where he stated that he feels good about the economic activity so far. He noted that if the US economy remains strong and inflation is not moving toward 2, then the Federal Reserve can "dial back policy restraint more slowly".