The Federal Reserve on Thursday slashed interest rates by a quarter-point, a decision that could benefit risk assets such as Bitcoin, which has been surging in price, setting new all-time highs following Donald Trump’s election victory. The rate cut was unanimous among the Fed's 12 voters and comes after a previous 50 basis point reduction in September. Lower interest rates tend to make investments in volatile assets like Bitcoin more attractive, as they mimic behaviors seen in technology stocks. Matt Mena, a strategist at 21Shares, noted that the Fed's decision, alongside Trump's pro-crypto policies, could enhance the economic environment for Bitcoin. Following the election, Bitcoin's price rose to $76,154, an 8% increase over the past week, and reached a peak of $76,677 earlier on Thursday. The Fed's intention is to balance risks concerning employment and inflation, allowing for a cheaper borrowing environment as inflation stabilizes.

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