Trump's Return Fuels Bitcoin Surge, Cryptocurrency Market in Frenzy, 210,000 Liquidated!

Trump's Return Fuels Bitcoin Surge, Cryptocurrency Market in Frenzy, 210,000 Liquidated!The news of Trump's victory has undoubtedly ignited market sentiment. During his campaign, Trump repeatedly expressed his fondness for Bitcoin and cryptocurrencies, promising policy support for the sector, which is viewed as a major bullish signal

Trump's Return Fuels Bitcoin Surge, Cryptocurrency Market in Frenzy, 210,000 Liquidated!

Bitcoin just broke through $81,000 per coin, setting a new all-time high! The cryptocurrency market is in a frenzy, with Ethereum rising nearly 3% and Dogecoin surging over 32% for the day. However, behind the euphoria lies the grim reality of 210,000 liquidations, totaling $690 million.

The news of Trump's victory has undoubtedly ignited market sentiment. During his campaign, Trump repeatedly expressed his fondness for Bitcoin and cryptocurrencies, promising policy support for the sector, which is viewed as a major bullish signal.

HashKeyGroup Chief Analyst, Ding Zaofei, believes that Trump will continue to release positive signals in the coming period, driving the digital currency market to continuously digest this favorable news. Trump's campaign promises of policies supporting cryptocurrencies, including adding Bitcoin to the national reserve and replacing the current SEC Chair Gary Gensler, could have a profound impact on the market.

However, in the long run, the rise of Bitcoin and other cryptocurrencies is closely tied to their liquidity. Ding Zaofei cautions that Trump's aggressive fiscal policies may lead to inflation figures being affected, in turn influencing the actual progress of the Fed's rate cuts. This is something to watch out for beyond market sentiment.

The return of "Trump 2.0" is bound to shake up global capital markets. The uncertainty of the US election is over, the Fed has embarked on a rate-cutting cycle, and the fundamentals of the US market remain sound, making the current environment favorable for risk assets. From a multi-asset allocation perspective, we can focus on equity markets, especially the US stock market, while maintaining a neutral stance on government bonds and credit bonds.

Zhang Ming, Deputy Director of the Institute of Finance at the Chinese Academy of Social Sciences, points out that in the short term, the US economy may continue to be robust, the probability of further inflation declines is low, the US stock market is expected to continue to trade at high levels, long-term interest rates are expected to continue to consolidate around 4% (negative for the bond market), the US dollar index is expected to remain strong, and Bitcoin prices may continue to rise in the short term. However, due to limited room for rate cuts under inflationary constraints, higher interest rate levels will put pressure on economic growth and corporate earnings. Volatility in the US stock market is expected to rise significantly in 2025 (especially in the second half).

Regarding the impact on Chinese asset classes, Zhang Ming believes that Chinese stock market performance in 2025 will be better than in 2024, while the yield on 10-year government bonds is expected to consolidate in a two-way range around a central level of 2.0-2.2%. The Chinese yuan against the US dollar is likely to fluctuate in a two-way range around a central level of 7.0-7.1.

Trump's return will undoubtedly have a profound impact on global capital markets. Investors need to carefully observe market trends and make rational investment decisions based on their own risk tolerance.