Since the US election on November 5th, the leading cryptocurrency has experienced a substantial increase of approximately 32%, reaching a peak of $89,599 early Tuesday. As of 9:25 a.m. in Singapore, Bitcoin was trading at $89,165.
Trump has signaled a more accommodating regulatory approach towards cryptocurrencies. Further solidifying this sentiment is the increasing influence of the Republican Party in Congress, potentially streamlining the implementation of his agenda. Proposed initiatives include establishing a strategic Bitcoin reserve within the United States and encouraging the growth of domestic Bitcoin mining operations.
Crypto Tracker
His position marks a significant departure from the stricter stance taken by the Securities & Exchange Commission under the Biden administration, which had pursued increased regulation of the digital asset space. This shift in outlook has sparked increased speculative buying activity across a range of digital assets, both major and minor, pushing the overall value of the crypto market to around $3.1 trillion, as reported by CoinGecko.
Market Enthusiasm
Bitcoin’s performance is described as being in “beast mode” by Chris Weston, Head of Research at Pepperstone Group. He suggests that traders who haven’t yet participated are now weighing whether to join the current bullish trend or wait for a potential price correction to ease some of the market’s upward momentum.
Options market data from the Deribit exchange reveals that investors are increasingly betting on Bitcoin reaching $100,000 before the year concludes. Meanwhile, MicroStrategy Inc., the largest corporate holder of Bitcoin among publicly traded companies outside of ETFs, recently purchased approximately 27,200 Bitcoins for around $2 billion between October 31st and November 10th.
Currently, market participants seem to be prioritizing the potential upside, paying less attention to the timing of Trump’s policy implementation or the feasibility of establishing a strategic Bitcoin reserve.
Overbought Conditions
Bitcoin’s value has more than doubled year-to-date in 2024, boosted by strong demand for newly-launched US-based ETFs and expectations of interest rate reductions by the Federal Reserve. The token’s growth has outperformed traditional investments like global stocks and gold.
Katie Stockton, a technical analyst at Fairlead Strategies LLC, notes that “it would be natural to see a period of consolidation after such a steep run-up,” recommending a “short-term neutral bias” in her latest research report.
Digital asset firms spent heavily during the recent US election cycle, supporting candidates who were perceived as favorable to the industry. This comes as Trump has recently reversed his prior stance, now supporting an industry he once dismissed as a scam.
This shift has positioned Bitcoin as one of the beneficiaries of the so-called “Trump trades.” Other assets in this category include US stocks and the US dollar, both of which have also experienced gains based on Trump’s focus on domestic economic expansion, tax cuts, and protective trade measures.