Bitcoin recorded a new ATH today of $82,000, enabled by a recent interest rate cut and Republicans nearing a full sweep in DC.
As Bitcoin continues to show strong momentum, altcoins are also seeing significant gains.
A Perfect BTC Setup: The Trump Trade Collides With Cheaper Borrowing Rates
Everything happened at just the right time for Bitcoin.
It started to rally last week as it became clear that Trump would take a second non-consecutive term at the Oval Office. But it wasn’t a “sell the news event.”
Rather, Bitcoin is now in its strongest-ever position, trading comfortably above $81K, having peaked earlier on Monday at $82K.
Trump’s hands-off approach to regulating financial markets offers a breath of fresh air for crypto traders.
The crypto sector has been under fire from the Securities and Exchange Commission (SEC) in recent years, which is led by Chair Gary Gensler.
Trump has made it no secret that he plans to boot Gensler and other crypto adversaries.
“If the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector,” Matt Simpson, market analyst at StoneX Financial, told the BBC.
Adding fuel to the fire, the US Federal Reserve (Fed) just cut interest rates for the second time this year.
The 7 November rate cut follows a cut at the previous Federal Open Markets Committee (FOMC) meeting on 18 September, where they cut rates by 50 basis points, and BTC surged in the aftermath.
Indeed, history is repeating, with Bitcoin steadily climbing from $75K at the time of November’s FOMC meeting.
Lower interest rates create an environment where risk-on assets (government bonds and cash) become more appealing than risk-off assets, causing a lot of institutional money to pour in.
We have also seen a lot of institutional BTC interest via spot ETFs in recent days. Farside Investments data shows a record-breaking $1.3 billion inflow on the day rates were cut.
The case for Bitcoin is highly bullish right now. However, it could be even more bullish for altcoins.
Bitcoin already has regulatory clarity. The SEC approved its ETFs, and it was not in the crosshairs of any of their purges.
But that’s not the case for most altcoins – many of which have been bracing for an SEC lawsuit letter if they hadn’t already received one.
However, Trump’s hands-off approach will create regulatory certainty for altcoins, allowing investors to buy with confidence.
But what are the best ones to buy now?
Pepe Unchained, Crypto All Stars Could be the Next Altcoins to Explode
One of the big winners from Trump’s victory was the Ethereum ecosystem. After months of sideways action, ETH soared 28% this week, and its ecosystem tokens pumped even more. For instance, NEIRO is up over 100%.
This is because SEC attacks stifled the Ethereum ecosystem, but this will no longer be the case under Trump.
As such, there’s a huge opportunity for Pepe Unchained right now, the world’s first meme coin Ethereum layer 2 blockchain. They’ve raised over $26 million so far, illustrating massive interest among investors.
The Pepe Chain will be 100x faster and much cheaper than Ethereum. It’ll also include features like staking, an Ethereum bridge, a block explorer, and “Pepe Pump Pad,” a two-click meme coin generator.
At a time when meme coins are showing serious strength, Pepe Unchained is creating a new, vibrant home for them on Ethereum.
Another altcoin showing high potential is STARS, the native token of Crypto All-Stars.
This is a new app that lets users stake meme coins for passive rewards. The project is currently running a token presale and has raised $3.3 million so far.
Given the broader market’s bullish outlook, its early stage and innovative use case could mark a solid opportunity.
The Crypto All-Stars staking platform, “MemeVault,” will support 11 of the top meme coins, including Dogecoin, Shiba Inu, Pepe, and Mog Coin. However, they’ll also add new tokens over time, which could create higher demand for the platform.
And here’s where it gets interesting: platform demand translates to $STARS demand. Users must hold $STARS to access the platform, and their rewards depend on how much they hold.
Those who want to maximize their earning potential must hold the highest amounts of $STARS.
Like with Pepe Unchained, Crypto All Stars’ innovative utility and strong presale performance are strong indicators of its long term potential.