Trump's "Department of Government Efficiency" Plan Ignites Crypto Market: Bitcoin Breaks $90,000, Dogecoin Surges Over 16%

Trump's "Department of Government Efficiency" Plan Ignites Crypto Market: Bitcoin Breaks $90,000

Trump's "Department of Government Efficiency" Plan Ignites Crypto Market: Bitcoin Breaks $90,000, Dogecoin Surges Over 16%

Following a brief pause, the cryptocurrency rally sparked by Trump's US presidential victory regained momentum on Wednesday, US trading time. Bitcoin broke through the important $90,000 mark, continuing to climb and hitting a new all-time high at $93,300, up 8.6% for the day. Top-ranked digital currencies rose across the board. Musk-backed Dogecoin surged over 16% in a single day. Dogecoin is one of the strongest performers in the cryptocurrency space recently.

After strong support for Trump's victory in the US presidential election, on November 12th, Trump announced that Musk would be one of the leaders of his "Department of Government Efficiency" (DOGE) initiative. The department's acronym is clearly a nod to Dogecoin.

In terms of cryptocurrency stocks, BTCDigital jumped over 71%, Bitcoin 2x Long ETF rose around 6.3%, and Bitcoin ETFs such as BTCW rose by 3.3% and ARKB by over 3.1%. According to data from the derivatives exchange Deribit, call options bets are concentrated on Bitcoin reaching $100,000. Earlier this week, US spot Bitcoin ETFs saw inflows of over $1 billion. Wall Street generally believes that Trump's promise to fully invest in the cryptocurrency field has pushed Bitcoin prices to new heights. Trump vowed to make the United States the world's cryptocurrency capital. Bitcoin speculators are betting on a more relaxed regulatory environment and expect authorities to establish a cryptocurrency reserve fund to help boost continued demand.

GalaxyDigital CEO Michael Novogratz said people would have to sell long-dated bonds in the bond market. Bitcoin prices could rise to $500,000. Bitcoin should match gold within ten years. The likelihood of Bitcoin becoming a reserve asset is low. The international reserve currency status of the dollar doesn't need something to back it. Some analysts also pointed out that relatively moderate leverage in the cryptocurrency market mitigates the risk of a sharp pullback. The market breather is likely to be short-lived, and the tailwinds remain strong.

However, there are also voices of doubt in the market. Some industry insiders pointed out that although further gains cannot be ruled out, many good news have already been factored into Bitcoin prices. In addition, US Treasury yields and the dollar are both rising, and relatively high borrowing costs are unfavorable for risky assets like cryptocurrencies.