Trump's Return Sparks Bitcoin Surge to $81,000, Crypto Market Boils Over!

Trump's Return Sparks Bitcoin Surge to $81,000, Crypto Market Boils Over!Bitcoin prices surged following Trump's victory announcement, reaching a new all-time high of $81,000 per coin, up 5.14% as of 9:59

Trump's Return Sparks Bitcoin Surge to $81,000, Crypto Market Boils Over!

Bitcoin prices surged following Trump's victory announcement, reaching a new all-time high of $81,000 per coin, up 5.14% as of 9:59. This surge wasn't isolated; the entire cryptocurrency market experienced a robust rally, with Ethereum climbing nearly 3% and Dogecoin seeing a significant jump. However, this explosive surge wasn't without consequences, with Coinglass data revealing over 210,000 liquidations totaling $690 million in the past 24 hours.

Trump's positive stance toward cryptocurrencies is widely considered the primary driver behind this market frenzy. During his campaign, he repeatedly expressed his fondness for Bitcoin and cryptocurrencies, promising policy support to establish the US as a global leader in blockchain technology. His campaign pledges included incorporating Bitcoin into national reserves and replacing the current SEC chairman Gary Gensler, measures that had a substantial positive impact on the market.

Trump's return not only sent shockwaves through the crypto market but also garnered global attention in the capital markets. Expectations are high that Trump will continue his policies of tax cuts and revitalizing American manufacturing. Matt Quaife, Global Head of Multi-Asset Management at Fidelity International, believes the current environment favors risky assets, making equity markets, particularly the US stock market, attractive.

However, Trump's policies aren't without their risks. Zhang Ming, Deputy Director of the Institute of Finance at the Chinese Academy of Social Sciences, warns that Trump's proactive fiscal policies could impact inflation data, potentially hindering the Federal Reserve's rate cuts. He predicts a significant increase in volatility in the US stock market in 2025, particularly in the second half of the year.

Concerning Chinese assets, Zhang Ming expects the Chinese stock market to perform better in 2025 compared to 2024. The RMB exchange rate against the USD is likely to fluctuate between 7.0 and 7.1 in a two-way pattern.

In conclusion, Trump's return has shaken up global capital markets, with the cryptocurrency market at the epicenter of this storm. The surge in Bitcoin prices is further proof of the immense potential of cryptocurrency. However, investors need to exercise caution in navigating market fluctuations and remain aware of potential risks while making informed investment decisions.