Cardano Soars 16% as Bitcoin Eyes $100K After Fed Rate Cut

Cardano's 16% surge and Bitcoin's potential rise to $100K follow the Fed's rate cut, boosting optimism in the cryptocurrency market.

Market Nov 11, 2024 10 Add to Reading List

Cardano's ADA token has experienced a remarkable 16% increase in the last 24 hours, leading the charge among major cryptocurrencies.
This surge is attributed to a broader market rally, heightened interest in decentralized finance (DeFi), and a growing attraction for retail investors.

Bitcoin traders are setting their sights on a $100,000 price target in the near future, spurred by recent price highs and the Federal Reserve's interest rate cut.
Notably, substantial inflows into Bitcoin ETFs have reinforced bullish sentiment in the market.

Despite a two-day rally that saw Bitcoin reach a record high of over $76,000, other major cryptocurrencies showed mixed results.
Bitcoin (BTC) saw a modest increase of 1.4%, while XRP and BNB Chain's BNB also gained slightly. Ethereum (ETH) rose more than 4%, and Solana (SOL) jumped 7.5%. The CoinDesk 20 Index recorded a 3.5% increase.

The Federal Reserve's decision to cut interest rates by 25 basis points is expected to bolster risk assets like Bitcoin by enhancing liquidity and diminishing the dollar's strength.
Fed Chair Jerome Powell reassured that the recent election results would not impact the central bank's policies in the near term, alleviating concerns about potential hawkish shifts.

Bitcoin ETFs in the U.S. saw over $1.3 billion in net inflows on Thursday, surpassing the previous record of $1.1 billion from March, primarily driven by BlackRock’s IBIT.
Traders are optimistic about Bitcoin's trajectory, with analysts suggesting that the $100,000 mark is a significant psychological level.

Min Jung, an investment analyst at Presto Research, indicated that the U.S. may eventually consider adding Bitcoin to its balance sheet as part of a strategic reserve.
Alex Kuptsikevich, a senior market analyst at FxPro, echoed this sentiment, noting that Bitcoin is likely to consolidate before the next upward movement, projecting potential growth to the $100,000 to $110,000 range within a few months.

Some traders have warned of possible short-term pullbacks, even as they maintain a generally bullish outlook on Bitcoin.
QCP Capital highlighted that investors are starting to retreat from certain trades linked to Trump’s election, noting a reversal in the dollar's gains and settling Treasury yields.
As the market contemplates fiscal concerns, such as Trump's proposed tariffs and rising national debt, Bitcoin may carry less risk compared to equities, positioning it for potential outperformance among risk assets.