Trump's victory ignites crypto market: Bitcoin surges past $80,000, investors need to be wary of risks

Trump's victory ignites crypto market: Bitcoin surges past $80,000, investors need to be wary of risksFollowing Trump's victory, Bitcoin prices have surged, briefly breaking through $80,000 on the evening of November 10th, setting a new all-time high, and exceeding $81,000 in the early hours of November 11th. As of 5pm on November 11th, Bitcoin was trading at $81,325, up 2

Trump's victory ignites crypto market: Bitcoin surges past $80,000, investors need to be wary of risks

Following Trump's victory, Bitcoin prices have surged, briefly breaking through $80,000 on the evening of November 10th, setting a new all-time high, and exceeding $81,000 in the early hours of November 11th. As of 5pm on November 11th, Bitcoin was trading at $81,325, up 2.8% in the past 24 hours and over 18% in the past week. Meanwhile, other cryptocurrencies such as Ethereum, Dogecoin, and BNB have also shown significant gains.

Cryptocurrencies are considered part of the "Trump trade." During his campaign, Trump repeatedly expressed support for Bitcoin and cryptocurrencies, and he plans to make the United States the "cryptocurrency capital of the Earth." He advocates for reducing regulatory barriers and pushing the US to become the global center for Bitcoin mining and crypto innovation. At the 2024 Bitcoin Conference, Trump even claimed that if he returns to the White House, he will include Bitcoin as a US strategic reserve asset.

Trump's victory is seen by the market as the most favorable outcome for crypto assets, providing a powerful boost and market confidence for Bitcoin's surge. Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, said that this policy shift has given Bitcoin a new status, significantly boosting market confidence in its long-term value.

With future policy regulation, institutional investors are increasingly interested in Bitcoin and Bitcoin ETFs. Many analysts are optimistic about the future trajectory of Bitcoin. Some analysts believe that $90,000 will be Bitcoin's next target and could be easily reached by the end of November. More optimistic views suggest that Bitcoin's price will reach $125,000 by the end of this year and $200,000 by the end of 2025.

However, it's important to note that volatility remains a key feature of Bitcoin's recent price action. In late October, Bitcoin briefly rose above $74,000, but fell back to $67,000 in early November. Subsequently, Bitcoin prices followed the changing landscape of the US election. After Trump officially declared victory in the election, Bitcoin began its soaring ascent.

The price surge has been accompanied by significant losses for many investors. According to Coinglass, in the past 24 hours, over 210,000 investors have been liquidated for a total of $635 million.

Yu Jianing pointed out that driven by the strong momentum of the bull market, Bitcoin prices may challenge the psychological barriers of $90,000 or even $100,000 in the coming months. These price targets, however, will depend on continued policy support, institutional capital inflows, and a supportive global macroeconomic environment. As prices rise, market volatility will also increase. Investors need to be cautious when chasing gains and assess their own risk tolerance.

The sustainability of this recent Bitcoin rally depends on several factors. First, it's crucial for market optimism to persist after Trump's policies are implemented, and for those policies to actually provide tangible support for the industry. On the other hand, the current surge is primarily driven by market expectations of future policy benefits. If policy details are not as clear or lenient as the market anticipates, it could lead to a market correction.

While Trump has shown clear support for digital assets during his campaign, there is uncertainty regarding the likelihood and timeline of policy implementation. This uncertainty stems from the divergent views on digital assets between the two major US parties, the complex legislative process, and the independent nature of financial regulators, all of which contribute to long policy change cycles.

Yu Jianing emphasizes that investors need to recognize the double-edged sword effect of policy changes and be wary of the risk of market sentiment overheating leading to corrections. In the digital asset market, overly optimistic sentiment can be accompanied by an increase in high leverage trading. Investors are advised to avoid highly leveraged operations during this period, maintain a diversified investment strategy, and implement strict risk management measures.