Bitcoin Breaks Through $80,000 Mark, Trump Victory a Catalyst?

Bitcoin Breaks Through $80,000 Mark, Trump Victory a Catalyst?Cryptocurrency data website CoinMarketCap shows that Bitcoin briefly topped $80,000 on the evening of November 10th, setting a new all-time high. As of press time, Bitcoin has retraced to $7

Bitcoin Breaks Through $80,000 Mark, Trump Victory a Catalyst?

Cryptocurrency data website CoinMarketCap shows that Bitcoin briefly topped $80,000 on the evening of November 10th, setting a new all-time high. As of press time, Bitcoin has retraced to $7.99 million per coin. This breakthrough follows closely on the heels of Trumps announcement of his victory in the US presidential election. In just five days, Bitcoin's price has experienced a meteoric rise, achieving a 16% surge over the past week.

Since the announcement of Trump's victory, Bitcoin has quickly stabilized above $70,000 and continued its march towards $80,000. This is no coincidence. During his campaign, Trump publicly expressed support for the development of cryptocurrencies and promised to designate Bitcoin as a strategic reserve asset for the United States. This sparked high expectations within the crypto industry, and optimism towards Trump's return to the White House.

Brian Armstrong, CEO of cryptocurrency company Coinbase, stated that Americans have a high level of interest in cryptocurrencies and they want clear regulatory rules for digital assets. Hunter Horsley, CEO of Bitwise Invest, believes the surge in Bitcoin's price reflects market confidence in its success and proves it is not overvalued.

In addition to the stimulus of Trump's victory, the Federal Reserve's interest rate cut policy has also provided a boost to the cryptocurrency market. On November 7th, the Federal Reserve announced it would lower the federal funds rate target range by 25 basis points, marking the second rate cut this year. Previously, the Federal Reserve had cut interest rates by 50 basis points on September 18. Interest rate cuts are generally interpreted as positive for risky assets, and cryptocurrencies, being one such asset class, have benefited as a result.

It's noteworthy thatBitcoin's surge has also driven up the prices of other cryptocurrencies. Ethereum, the second-largest cryptocurrency, has seen a surge of over 30% in the past seven days, trading at $3201. Binance Coin, Tether, Solana (SOL), and other cryptocurrencies have also witnessed increases, with their gains continuing to expand.

Regarding ETFs, Coinglass website data shows that Bitcoin spot ETFs continue to experience net inflows. On November 6th, the net inflow was $6.22 billion, followed by $13.59 billion on the 7th, and $2.92 billion on the 8th. Ethereum spot ETFs have also witnessed consecutive net inflows over the past three trading days, with inflows of $52.3 million, $79.7 million, and $85.9 million respectively.

Furthermore, Cardano founder Charles Hoskinson recently announced the establishment of a dedicated policy department focused on cryptocurrency regulation and promoting the development of relevant regulations. This news also pushed Cardano's ADA token up by 39% in the past 24 hours, accompanied by a significant increase in trading volume.

Whether Bitcoin's breakthrough of $80,000 heralds a new era of prosperity for the cryptocurrency market or is merely a short-term stimulus effect driven by Trump's victory remains to be seen. The future trajectory still needs to be observed. What is certain is that the cryptocurrency market has entered a new stage of development, and the refinement of regulatory policies and the growth of investor confidence will be key factors shaping the market's future direction.