The "Trump Trade" Continues: Bitcoin Hits New High, Tesla Returns to $1 Trillion Market Cap

The "Trump Trade" Continues: Bitcoin Hits New High, Tesla Returns to $1 Trillion Market CapThe "Trump Trade" seems to be still in full effect, not only with Bitcoin hitting a new all-time high, but also with the US stock market seeing a collective surge. Tesla's stock price, in particular, is experiencing a strong rally, pushing its market cap back to $1 trillion

The "Trump Trade" Continues: Bitcoin Hits New High, Tesla Returns to $1 Trillion Market Cap

The "Trump Trade" seems to be still in full effect, not only with Bitcoin hitting a new all-time high, but also with the US stock market seeing a collective surge. Tesla's stock price, in particular, is experiencing a strong rally, pushing its market cap back to $1 trillion.

Bitcoin Hits New High, Investor Enthusiasm Soars

After Trump won the US presidential election, the price of Bitcoin has been steadily rising and recently broke through $77,000, setting a new all-time high. Over the past seven days, the spot price of Bitcoin has risen by approximately 10.6% and has surged by 70% year-to-date.

However, amidst the continued volatility, liquidation events are becoming increasingly severe. Data from Coinglass shows that over 91,000 people have been liquidated from virtual currency trading in the past 24 hours.

It's worth noting that Bitcoin investors have achieved another historical milestone. According to Nate Geraci, president of TheETFStore, the iSharesBitcoinETF (IBIT), a Bitcoin exchange-traded fund from BlackRock, the world's largest comprehensive financial services group, has surpassed the asset size of its gold exchange-traded fund, iSharesGoldETF (IAU). IBIT achieved this feat in just 10 months after its listing, while iSharesGoldTF (IAU) is a long-established fund launched by BlackRock in January 2005.

Trump's Policies Bolster Crypto Development

During his campaign, Trump repeatedly emphasized that the innovative spirit and autonomy of Bitcoin and cryptocurrencies align with America's core values. He believes that the US should embrace cryptocurrencies first, or it will be overtaken by other countries. Therefore, he plans to support the crypto industry through policy, aiming to make the US a dominant force in the global Bitcoin and blockchain technology space.

According to reports, officials from Trump's transition team are considering appointing Dan Gallagher, an executive from the popular brokerage firm Robinhood, as the chairman of the US Securities and Exchange Commission (SEC), a move that has garnered support from crypto industry executives.

US Stocks Surge Collectively, Tesla Returns to $1 Trillion Market Cap

Besides Bitcoin, the US stock market is also experiencing a strong surge. At the close of trading, the Dow Jones Industrial Average rose by 0.59% to 43,988.99 points, the S&P 500 Index rose by 0.38% to 5,995.54 points, and the Nasdaq Composite rose by 0.09% to 19,286.78 points, all setting new all-time highs. This week, the Dow Jones gained 4.61%, the S&P 500 gained 4.66%, and the Nasdaq gained 5.74%.

Tesla's stock price soared by 8.19%, with a cumulative gain of over 29% this week, pushing the company's total market capitalization back to $1 trillion. Tesla CEO Elon Musk's net worth surpassed $300 billion, making him the world's richest person for the first time in 2022.

Chinese ADRs Decline Collectively, Renminbi Exchange Rate Weakens

In stark contrast to the strong performance of US stocks and Bitcoin, Chinese ADRs experienced a collective decline. The Nasdaq Golden Dragon China Index fell by over 4.7%.

The Renminbi exchange rate also declined. The offshore Renminbi (CNH) traded at 7.2013 yuan against the US dollar at 5:59 Beijing time, down 530 points from the New York close on Thursday. The pair traded in the range of 7.1457-7.2094 yuan for the day. On November 6, the Renminbi broke out of its consolidation pattern from the first two trading days of the week, falling from 7.0935 yuan to below 7.2 yuan, marking a cumulative decline of approximately 660 points for the week.

Gold and Silver Prices Continue to Decline

Gold and silver prices continued to decline. COMEX gold fell by 0.53% to $2,691.5 per ounce, marking a cumulative decline of 2.09% for the week.

Summary

The ongoing "Trump Trade" seems to be pushing markets higher, with Bitcoin, US stocks, and Tesla all exhibiting strong growth. However, Chinese ADRs and the Renminbi exchange rate have declined, while gold and silver prices continue to slide. The market trends are complex, requiring investors to cautiously observe market movements and make rational decisions.