Trump + Rate Cuts = All Time Highs!

Welcome back to the Daily Coinsauce Newsletter! Let’s dive into today’s updates—there’s a lot to unpack!

📅 Today

FOMC X Bitcoin ❗️ 

The Federal Reserve cut its federal funds rate by 25 basis points today, bringing it down to 4.5–4.75%, a widely expected move.

This is only the second rate cut in four years, marking a shift from the Fed’s previously hawkish tone.

QUICK SUMMARY OF FED DECISION :

1. Fed cuts interest rates by 25 bps in 2nd cut of 2024

2. Vote for 25 basis point rate cut was unanimous

3. Fed says risks to goals remain "roughly in balance"

4. Labor market conditions have "generally eased"

5. Fed removes "gaining confidence" on inflation moving to 2%

6. Fed will continue to reduce its balance sheet

Following the announcement, Bitcoin surged to a new all-time high of $76.7K.

What’s Next For Gold ⁉️ 

Are gold prices setting up for another leg up?

Since 1971, there have been 7 bull markets in gold with a medium length of 199 weeks and an average return of 250%.

The longest one lasted for 445 weeks and gold prices rallied 294% during this time.

The shortest bull market lasted for 33 weeks with gold prices rising 65%.

On the other hand, the best return was seen in the 1970s, at 701%, when the bull market lasted for 177 weeks.

Currently, the bull market has lasted for 105 weeks and returned 64% thus far which is well below average.

History suggests gold has more room to run.

Source : The Kobeissi Newsletter

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🌎 Other News

• Coinbase stock surges after Trump win. Read more

• Eclipse launches public main-net. Read more

• Trump adviser says Powell will likely keep Fed role until 2026. Read more 

• Sui hits net all-time-highs. Read more 

• France considers banning Polymarket. Read more

📕 Educational

Yesterday was the biggest day of spot volume for $BTC, surpassing the March peak.

Here’s some great stats:

• Open interest is at the same levels as Nov. 1 when BTC was trading at 70k.

• OI has come down to 2.4% of BTC market cap from 2.6% since Oct. 29

• This seems to be mainly a spot driven rally.

If this is the case, this is incredibly bullish for BTC. Price rises accompanied by spot buying rather than by futures speculation and leverage trades is always more sustainable for momentum continuation.

Source : James Van Straten 

📊 Stat of the day

🤣 Meme of the day

That concludes our update for today!

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Disclaimer: None of the content shared in the newsletter is financial advice. Always do your own research and analysis before investing.