Trump's Election Win Ignites Bitcoin Mania: Price Surges Past $77,000, Institutional Money Floods In

Trump's Election Win Ignites Bitcoin Mania: Price Surges Past $77,000, Institutional Money Floods InFollowing Donald Trump's victory in the US presidential election, Bitcoin's price has skyrocketed, breaking through $77,000 on November 9th, setting a new all-time high. As of press time, Bitcoin has retraced slightly, trading at $76,429

Trump's Election Win Ignites Bitcoin Mania: Price Surges Past $77,000, Institutional Money Floods In

Following Donald Trump's victory in the US presidential election, Bitcoin's price has skyrocketed, breaking through $77,000 on November 9th, setting a new all-time high. As of press time, Bitcoin has retraced slightly, trading at $76,429.2 per coin. Over the past five natural days, Bitcoin has gained approximately 13% in value. The cryptocurrency has also seen a 40% surge over the past two months, and is up nearly 80% year-to-date.

Meanwhile, Ethereum has also neared the $3,000 mark. Data from Coinglass indicates that close to 90,000 users have liquidated their positions in the past 24 hours, with total liquidations reaching $211 million.

It is noteworthy that the assets under management (AUM) of BlackRock's Bitcoin exchange-traded fund (ETF), iSharesBitcoinETF (IBIT), have surpassed its gold ETF, iSharesGoldETF (IAU), signifying a historical breakthrough for Bitcoin ETFs. IBIT currently boasts $34.3 billion in total assets, while IAU remains around $33 billion.

BlackRock launched IAU in January 2005, while IBIT made its debut in January of this year. Within just nine months, IBIT has attracted $27 billion in capital inflows, a development closely tied to the surge in cryptocurrencies after Trump's election victory.

Since the election results were announced on Tuesday, Bitcoin's price has rallied from $67,000 to a peak of $77,000. During his campaign, Trump repeatedly expressed his approval of Bitcoin and cryptocurrencies, commending their innovative spirit and autonomy as aligning with core American values. He emphasized the importance of the US taking the lead in embracing cryptocurrencies, warning that other nations would dominate the space if America lagged behind. As a result, he has outlined plans to support cryptocurrencies through policy measures, aiming to catapult the US into a global leadership position in Bitcoin and blockchain technology.

In recent years, multiple institutions and analysts have expressed optimism about Bitcoin's future. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, recently suggested that Bitcoin's price would reach $125,000 by the end of this year and $200,000 by the end of 2025 following Trump's win. This prediction echoes the forecast made earlier this month by analysts at the research and brokerage firm Bernstein.

Kendrick believes that Trump's numerous pro-cryptocurrency pledges, such as establishing a national strategic Bitcoin reserve and repositioning the US as a "Bitcoin superpower," will fuel Bitcoin's price growth. He stated that Standard Chartered Bank's analysis of Bitcoin options trading reveals strong investor interest in the $80,000 price region, indicating that Bitcoin is likely to reach this level "within the next week or two."

On the regulatory front, Kendrick anticipates that Trump would overturn Biden's veto of SAB121. SAB121 is a contentious accounting guidance issued by the US Securities and Exchange Commission (SEC) that critics maintain hinders investment banks from offering large-scale cryptocurrency custody services. Kendrick believes that Trump will swiftly address this matter upon taking office on January 20th next year, and contends that this move would encourage broader institutional adoption of cryptocurrencies.

Nick Philpott, co-founder of digital asset brokerage Zodia Markets, asserted, "Our target range (for Bitcoin) for the Trump win event is $75,000 to $80,000. We expect ETF flows and broad crypto fund inflows to push Bitcoin to $100,000 early in Q1 next year, potentially even earlier. In terms of options, there is a large amount of call option strike price sitting at $80,000 to $100,000, which should provide further momentum."

Bitwise's Chief Investment Officer remarked, "We are entering a golden age of crypto, and we will see a strong bull market for years to come." Coinbase CEO Brian Armstrong stated following the US election on November 5th, "Cryptocurrency is here to stay from a policy perspective."

It's worth noting that blockchain data company Arkham announced on X that its crypto derivatives exchange ARKHAMPERPETUALSEXCHANGE is open for registration, with trading slated to commence in approximately one week. Arkham clarified that registration eligibility varies based on jurisdiction, with users residing in certain jurisdictions (including the US) excluded from access.

Moreover, news of the potential imminent approval of the first Bitcoin ETF in the US market has also fueled excitement within the market.

Policy expectations fueled by Trump's electoral victory, coupled with the continued influx of institutional capital, have injected robust momentum into the Bitcoin market. The market consensus anticipates sustained strong upside momentum for Bitcoin in the coming period.