Trump's Victory Ignites Cryptocurrency Frenzy: Bitcoin Surges Past $76,000, Regulatory Tailwind?

Trump's Victory Ignites Cryptocurrency Frenzy: Bitcoin Surges Past $76,000, Regulatory Tailwind?Following Donald Trump's surprise victory in the US presidential election, global financial markets have experienced a new wave of volatility. Amidst this storm, Bitcoin has once again become the center of attention

Trump's Victory Ignites Cryptocurrency Frenzy: Bitcoin Surges Past $76,000, Regulatory Tailwind?

Following Donald Trump's surprise victory in the US presidential election, global financial markets have experienced a new wave of volatility. Amidst this storm, Bitcoin has once again become the center of attention. On November 9, the price of Bitcoin briefly surpassed $77,000, setting a new all-time high. While gains have slightly narrowed, the price remains elevated at $76,429.2 per coin as of this writing. Over the past five natural days, Bitcoin has risen by approximately 13%, and has seen a remarkable 40% increase in the past two months. Year-to-date gains have reached nearly 80%. Ethereum has also surged alongside Bitcoin, nearing the $3,000 mark, demonstrating the overall strength of the cryptocurrency market.

However, behind this frenzy lies considerable risk. Data from Coinglass reveals that nearly 90,000 traders have liquidated positions in the virtual currency market in the past 24 hours, resulting in total losses of $211 million. This serves as a stark warning for investors.

It is noteworthy that Bitcoin's popularity is not solely reflected in its price, but also in its rising market standing. According to Nate Geraci, president of TheETFStore, the assets under management (AUM) of the iShares Bitcoin ETF (IBIT) have surpassed those of its counterpart, the iShares Gold ETF (IAU), reaching $34.3 billion, while IAU's AUM hovers around $33 billion. This historic milestone underscores the emergence of Bitcoin as a burgeoning asset class and investor confidence in its future potential.

The rapid growth of IBIT is inextricably linked to the surge in cryptocurrencies following Trump's election win. Since the election on Tuesday, Bitcoin's price has steadily climbed from $67,000 to a record high of $77,000. During his campaign, Trump repeatedly lauded Bitcoin and cryptocurrencies, emphasizing their innovative spirit and autonomy as aligned with core American values. He vowed to support cryptocurrencies through policy initiatives, aiming to establish US leadership in global Bitcoin and blockchain technologies.

Trump's election victory has undoubtedly infused the cryptocurrency market with new vitality. Numerous institutions and analysts have expressed optimism about Bitcoin's future trajectory. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, predicts that after Trump's election, Bitcoin's price will reach $125,000 by the end of the year and $200,000 by the end of 2025. He believes that Trump's cryptocurrency policies, such as establishing a national strategic Bitcoin reserve and transforming the US into a "Bitcoin superpower," will be key drivers of Bitcoin's growth.

Kendrick also notes that based on Bitcoin options trading, Standard Chartered has observed significant investor interest at price points around $80,000, suggesting that the cryptocurrency will reach this level "within the next week or two." In terms of regulation, he anticipates Trump's reversal of Biden's veto of SAB121, a controversial accounting guideline from the US Securities and Exchange Commission (SEC) that has been criticized for hindering investment banks from offering large-scale cryptocurrency custody services. Kendrick believes this will likely happen soon under a Trump administration, boosting institutional adoption of cryptocurrencies.

Nick Philpott, co-founder of digital asset brokerage Zodia Markets, also stated that they anticipate a target range of $75,000 to $80,000 for Bitcoin following Trump's victory. They project that ETF inflows and broader cryptocurrency inflows will push Bitcoin toward $100,000 in early Q1 of next year, potentially even sooner. In the options market, a substantial number of call options have strike prices between $80,000 and $100,000, which should further fuel Bitcoin's upward momentum.

Bitwise's Chief Investment Officer has expressed even greater optimism, declaring that we are entering a golden age of cryptocurrencies, anticipating a strong bull market in the years to come. Coinbase CEO Brian Armstrong also stated after the election that cryptocurrencies are here to stay from a policy perspective.

Beyond market excitement, the cryptocurrency space is continuously exploring new avenues of development. Blockchain data company Arkham recently announced on X that its crypto derivatives exchange, ARKHAMPERPETUALSEXCHANGE, is now open for registration, with trading slated to commence in a week. However, it is worth noting that users residing in certain jurisdictions (including the US) will be excluded due to regulatory discrepancies. This reflects, to some extent, the regulatory challenges facing the cryptocurrency market.

Furthermore, the news of a potential approval for the first Bitcoin exchange-traded fund (ETF) in the US market has sparked widespread attention. If this materializes, it will undoubtedly inject new vitality into the Bitcoin market, attracting more investors to this emerging sector.

This article is originally from finance.sina.com.cn.