Trump's Victory Sends Bitcoin Soaring Past $73,000, Igniting Cryptocurrency Market

Trump's Victory Sends Bitcoin Soaring Past $73,000, Igniting Cryptocurrency MarketFollowing the conclusion of the US election, with Republican presidential candidate Donald Trump securing victory, Bitcoin surged to a record high. After opening on November 6th, Bitcoin skyrocketed, surging over 8% in early trading, reaching a new all-time high of $75,349 per coin

Trump's Victory Sends Bitcoin Soaring Past $73,000, Igniting Cryptocurrency Market

Following the conclusion of the US election, with Republican presidential candidate Donald Trump securing victory, Bitcoin surged to a record high. After opening on November 6th, Bitcoin skyrocketed, surging over 8% in early trading, reaching a new all-time high of $75,349 per coin. Although it subsequently retreated from these heights, it remained firmly above $73,000. As of 5:00 PM Beijing time, Bitcoin was up 6.08% for the day, trading at $73,634 per coin.

Trumps campaign rhetoric consistently conveyed a pro-crypto stance, promising to include Bitcoin in the national reserve and replace the current SEC Chair Gary Gensler. These policy proposals are widely perceived as significant positives for the cryptocurrency market. He even personally immersed himself in the Web3 space, launching NFTs, establishing a DeFi project under the family name, and even accepting Bitcoin as campaign contributions.

HashKeyGroup Chief Analyst Ding Zaofei believes Trump's victory is undoubtedly good news for the crypto industry. He predicts that the current market reaction is simply an initial digestion of positive news, and the digital currency market will continue to climb in the coming period.

Investment firm Bernstein also released a report on Monday predicting that if Trump won the election, Bitcoin would surpass the all-time high of $73,798 set in March and reach the $80,000 to $90,000 range within the next few weeks.

However, Ding Zaofei cautions that Trump's active fiscal policy may lead to inflation data being affected, potentially impacting the actual progress of the Fed's rate cuts. This is a factor to be wary of, beyond the market sentiment.

Beyond Bitcoin, other cryptocurrencies have also experienced substantial rallies. According to coinglass data, over the past 24 hours, Ethereum has risen 5.99%, Litecoin is up 3.09%, and Dogecoin, favored by Elon Musk, has jumped a remarkable 15.33%. Short-sellers in the cryptocurrency market have suffered massive liquidations, with over 120,000 accounts liquidated in the past 24 hours, resulting in the evaporation of $554 million (approximately 3.967 billion yuan).

Bitcoin had previously reached a new record high of $73,000 in March of this year before retracting, mainly due to the Biden administration's crackdown on cryptocurrencies. It spent a considerable period hovering below the $70,000 mark. This latest surge in Bitcoin and other cryptocurrencies is widely seen as a direct response to Trump's victory.

Coinbase's Bitcoin premium index soared to 0.2034% in the early hours of yesterday morning, marking its highest level since late September. This surge indicates strong investor demand for Bitcoin.

Trump's victory has undoubtedly injected a shot of confidence into the cryptocurrency market and fueled market optimism for the future. However, investors are advised to remain rational, monitor market fluctuations, and invest cautiously to avoid blindly chasing gains.

Further Analysis of the Article:

Trump's victory has impacted the cryptocurrency market in several key ways:

• Policy Benefits: Trump's campaign promises to include Bitcoin in the national reserve and replace the current SEC Chair Gary Gensler are seen as strong support for the cryptocurrency market, boosting its legitimacy and recognition.

• Market Expectations: Trump's positive attitude towards cryptocurrencies and his potential policies have increased market confidence in crypto, encouraging investors to invest more heavily in it.

• Capital Inflow: As the market becomes more bullish on cryptocurrencies, more funds are flowing into the cryptocurrency market, driving up prices for Bitcoin and other cryptocurrencies.

• Market Sentiment: Trump's victory is undoubtedly positive news for the cryptocurrency market, boosting market sentiment and pushing up cryptocurrency prices.

However, it's important to note:

• Inflation Risk: Trump's active fiscal policy may lead to an increase in inflation data, potentially impacting the actual progress of the Fed's rate cuts, which could negatively impact the cryptocurrency market.

• Market Volatility: The cryptocurrency market is highly volatile, and investors need to invest cautiously to avoid blindly chasing gains.

• Regulatory Risk: Although Trump is pro-crypto, there is still uncertainty surrounding the US government's cryptocurrency regulatory policies, which could present regulatory risks in the future.

In conclusion, Trump's victory is positive news for the cryptocurrency market, but investors need to remain rational, monitor market fluctuations, and invest cautiously to avoid blindly chasing gains.