Trump's Win Sparks Crypto Market Surge, Bitcoin Hits All-Time High of $80,000

Trump's Win Sparks Crypto Market Surge, Bitcoin Hits All-Time High of $80,000On November 10, the cryptocurrency market experienced another surge, with Bitcoin's price breaking through the $80,000 mark for the first time ever, setting a new all-time high. Meanwhile, Ethereum and Dogecoin also reached new highs for the year, leading to significant losses for short sellers

Trump's Win Sparks Crypto Market Surge, Bitcoin Hits All-Time High of $80,000

On November 10, the cryptocurrency market experienced another surge, with Bitcoin's price breaking through the $80,000 mark for the first time ever, setting a new all-time high. Meanwhile, Ethereum and Dogecoin also reached new highs for the year, leading to significant losses for short sellers.

Bitcoin reached a peak of $80,178 per coin during the day, marking its first time above $80,000. Ethereum climbed above $3,200 per coin, its highest point since August of this year. Dogecoin surged to $0.23294 per coin, also its highest point since 2022.

The continuous rise in cryptocurrency prices has resulted in substantial losses for investors who had engaged in short-selling. According to Coinglass data, over the past 24 hours, 131,771 individuals faced liquidations, totaling $384 million. The largest single liquidation occurred on Binance-BTCUSDT, amounting to $13.10 million.

Daan, a cryptocurrency analyst and trader, stated that Bitcoin is currently in a price discovery mode and has the potential to climb further, potentially reaching $88,800. He emphasized that while Bitcoin might not reach this target in a straight line, the overall market trend remains bullish.

Trump's victory is viewed as part of the "Trump Trade," injecting a shot of adrenaline into the cryptocurrency market. During his campaign, Trump repeatedly expressed his fondness for Bitcoin and cryptocurrencies, believing they align with America's innovative spirit and autonomy. He also outlined plans to support cryptocurrencies through policy, aiming to make the United States a global leader in Bitcoin and blockchain technology.

Following the news of Trump's victory, Bitcoin's price rapidly escalated. Over the past five days, Bitcoin has risen by more than 10%, with a gain of around 40% in the past two months and a surge of nearly 80% year-to-date.

Some institutions believe that Trump's economic policies are favorable to cryptocurrency. Huachuang Securities pointed out that Trump's economic policies might lead to uncertainty in the US economy but also bring inflation risks. In such a scenario, the probability of rising USD and US bond yields is high, leading to increased volatility in the US stock market, which is beneficial for gold and Bitcoin, while oil prices could be negatively affected.

Guoyuan Securities also stated that Trump's explicit support for cryptocurrency, coupled with the enhanced monetary attributes of cryptocurrencies amidst escalating global divisions, will be beneficial to the cryptocurrency market.

Investor optimism regarding Trump's victory is also reflected in the inflow of funds into Bitcoin funds. IBIT, the Bitcoin fund managed by global asset management giant BlackRock, experienced an unprecedented net subscription of $1.1 billion on Thursday, surpassing the total assets of BlackRock's flagship gold trust fund, IAU. IBIT currently holds $34.3 billion in assets, while IAU remains around $33 billion.

BlackRock's Bitcoin ETF was launched just this January. In a mere nine months, this alternative asset ETF has attracted $27 billion in inflows. Bernstein Research, in its latest report, predicted that Bitcoin's price could reach $200,000 by the end of 2025.

Source: Securities Times, Cailian Press, Public Information

SFC Editor: Li Yutong Intern: Zhong Jing

21 Jun Reads