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Bitcoin: ATH with Record volumes, but watch out for FOMC
By Daniele Corno
Bitcoin price closes daily candle in ATH, tonight's FOMC: market awaits rate cut by FED
Bitcoin in ATH with a RECORD candle
The day after the U.S. election is record-breaking for Bitcoin and the entire sector.
Bitcoin shows strength and interest, confirming with the daily close a new ATH, breaking $74,000 and reaching a high of $76,000, up 9% on the daily.
The growth was supported by surging volumes. Indeed, spot ETFs traded over $6.1 billion, a volume not seen since as far back as March 25. Record also for CME Bitcoin futures, which exceeded $13.1 billion in volume, the highest ever.
The largest volumes are obviously pouring into the derivatives markets, the volume ratio in fact, has a value of 0.07 between spot and derivatives.
UK and US: rate cut ready
Today the market is expecting high volatility ahead of interest rate cuts by two central banks.
At 1 p.m., the Bank of England makes its decision on interest rates, with the market expecting a 25 basis point cut, with new rates expected at 4.75%.
At 2:30 p.m. instead follows data on U.S. unemployment claims, expected to rise from 216k to 223k.
Finally, in the evening today, at 8 p.m. it will be the turn of the Federal Reserve. The market is unanimously discounting a 25 basis point cut, quoting 98.9% probability and assigning 1.1% probability to a more aggressive 50 basis point cut.
In either case,the outcome will most likely be positive for all major markets, as a lower cost of money creates an incentive for liquidity.
