Bitcoin’s meteoric rise continued on November 8th, reaching a new all-time high of nearly $77,000 on Bitstamp. This surge followed a sudden upward momentum during the Wall Street trading session, fueled by the Federal Reserve’s decision to lower interest rates by 0.25%.
The market’s reaction to the Fed’s move was largely anticipated, with consensus favoring another rate cut in December. However, experts cautioned that a potential uptick in long-term inflation could jeopardize the Fed’s accommodative stance.
While Bitcoin’s price soared, concerns emerged regarding the high levels of leverage in the market. Analysts warned that a sudden market reversal could trigger mass liquidations among leveraged Bitcoin positions, potentially leading to a significant price correction.
Despite these risks, Bitcoin’s bullish momentum remained strong, driven by a combination of factors including increased institutional adoption, growing investor interest, and the ongoing expansion of the cryptocurrency ecosystem.