Bitcoin Breaks $80,000, "Trump Effect" Back in Play?

Bitcoin Breaks $80,000, "Trump Effect" Back in Play?On November 10th, Bitcoin continued its recent strong momentum, surging over 4% on the day, briefly surpassing the $80,000 mark, reaching $80,200 per coin, setting a new all-time high. This marked the first time Bitcoin has ever crossed the $80,000 threshold

Bitcoin Breaks $80,000, "Trump Effect" Back in Play?

On November 10th, Bitcoin continued its recent strong momentum, surging over 4% on the day, briefly surpassing the $80,000 mark, reaching $80,200 per coin, setting a new all-time high. This marked the first time Bitcoin has ever crossed the $80,000 threshold. Additionally, Ethereum saw a strong rally, breaking through the $3,200 per coin mark, hitting its highest level since August. Dogecoin reached a peak of $0.24912 per coin, its highest point since 2022. The recent sustained surge in cryptocurrencies has resulted in significant losses for short-sellers. According to Coinglass market data, over the past 24 hours, more than 140,000 traders have been liquidated, amounting to $446 million in losses. The largest single liquidation occurred on Binance-BTC, valued at $13.10 million.

Bitcoin's robust surge has once again attracted attention, with the "Trump effect" being considered a key driver. During his campaign, Trump repeatedly expressed his fondness for Bitcoin and cryptocurrencies, touting their innovative spirit and autonomy as aligning with core American values. He proposed policy measures to support cryptocurrencies, aiming to make the US a global leader in Bitcoin and blockchain technology. Following his election victory, Trump further solidified the bullish confidence of Bitcoin investors. After news of his victory spread, Bitcoin prices embarked on a rapid ascent. Over the past five calendar days, Bitcoin has gained over 10%; in the last two months, it has risen by about 40%; and for the year, Bitcoin has surged nearly 80%.

Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, previously stated that after Trump's election victory, Bitcoin prices would reach $125,000 by the end of this year and $200,000 by the end of 2025. Kendrick believes that Trump's earlier promises regarding cryptocurrencies such as ousting Gary Gensler, the chairman of the US Securities and Exchange Commission, establishing a national strategic Bitcoin reserve, and transforming the US into a "Bitcoin superpower" would propel Bitcoin's growth.

While Trump's stance on cryptocurrencies during his presidency was generally positive, the specific implementation effects of his policies remain to be seen. Moreover, regulatory scrutiny of cryptocurrencies and global economic conditions are factors that could also influence Bitcoin price trends.

Bitcoin's breach of the $80,000 mark has sparked renewed market buzz. Whether Trump's policy inclinations towards cryptocurrencies can provide sustained support for Bitcoin prices is a matter of observation. The future direction of Bitcoin and its ability to maintain its robust growth trajectory remains to be seen.