The “Trump trade” took center stage Tuesday evening and early Wednesday, with cryptocurrency prices surging as Bitcoin hit a new all-time high, buoyed by early signs of a potential Republican return to the White House .

Bitcoin’s rise came as the market began pricing in a likely victory for former President Donald Trump on Election Day, with key states finalizing votes sooner than many had predicted.

On Wednesday, Bitcoin posted its biggest daily performance since March 20, posting a 9% gain to close above $75,560, according to TradingView’s Crypto Index.

As markets salivate at the prospect of a recovery next week, the US Federal Reserve’s decision by the Open Market Committee to cut or hold its key rate on Friday is unlikely to support prices, according to some.

“The decision won’t matter much,” said David Lawant, head of research at FalconX. Decrypt. “But there is significant macroeconomic uncertainty as we enter 2025 under a Trump presidency.”

Lawant instead highlighted the uncertainties surrounding Trump’s decision. proposed prices and their impact on crypto, as well as tax and monetary policy decisions the former president might make during a second term.

However, not everyone agrees with Lawant’s view.

Pav Hundal, senior market analyst at crypto exchange Swyftx, said Decrypt the Fed’s decision has “every chance of being more favorable to Bitcoin than the result of the American elections”.

Lower interest rates lower borrowing costs, increase consumer spending and make traditionally safer investments like bonds less attractive, prompting investors to turn to riskier assets for higher returns.

“The market is already taking risks towards Bitcoin again,” Hundal said. “A drop of 25 basis points or more will only accelerate this move and make a six-figure Bitcoin price by the end of the year an even more likely scenario.”

A change in rates often boosts demand and valuations for stocks as well as cryptocurrencies, as investors seek better growth opportunities in a low rate environment.

“It’s FOMO superimposed on FOMO in the markets right now,” Hundal added. “We saw a clear accumulation trend immediately after the last rate cut, so it’s safe to say that a 0.25% cut would be very positively received.”