Bitcoin has risen above $79,000 for the first time ever in a week that has seen it hit several new highs since Donald Trump was re-elected as U.S. president.
Bitcoin jumped to $79,141 on the Coinbase cryptocurrency exchange, before falling back to below $79,000.
The victory of Republican Donald Trump in the US presidential elections contributed to the strengthening of the value of the cryptocurrency, as Trump repeatedly expressed his support for crypto assets and promised to make the United States the world's superpower for Bitcoin and cryptocurrencies.
The previous Trump presidency saw corporate tax cuts that brought more liquidity into the markets, encouraging investment in high-growth assets like cryptocurrencies.
Trump announced in September that he, his sons and businessmen would launch a cryptocurrency platform called World Liberty Financial.
World Liberty Financial enables users to lend or borrow cryptocurrencies to or from each other – a service already offered by several platforms, most notably Aave.
The Federal Reserve's decision to cut interest rates for the second time in 2024 has supported Bitcoin prices, as weak interest rates enhance liquidity and encourage individuals to take risks and achieve higher returns by investing in high-yield, risky assets, such as cryptocurrencies.
US interest rates
On November 7, the US Federal Reserve cut its benchmark interest rate by a quarter of a percentage point, less than two days after Donald Trump won the US presidential election.
This is the second consecutive rate cut by the Federal Reserve after a half-point cut on September 18, the first in four years.
