Bitcoin Hits New High! Trump Victory Fuels Crypto Market Frenzy

Bitcoin Hits New High! Trump Victory Fuels Crypto Market FrenzyOn October 10th, Bitcoin surged over 6% and continued its climb on the Asian markets on the 11th, reaching above $81,000, setting a new all-time high. Futures premiums also soared

Bitcoin Hits New High! Trump Victory Fuels Crypto Market Frenzy

On October 10th, Bitcoin surged over 6% and continued its climb on the Asian markets on the 11th, reaching above $81,000, setting a new all-time high. Futures premiums also soared. Investors widely believe that Bitcoin, the world's largest cryptocurrency, is poised for further gains as a candidate supportive of cryptocurrencies won the US election.

Year-to-date, Bitcoin has gained over 90%. This has been fueled by the strong demand for spot Bitcoin exchange-traded funds (ETFs) and expectations of a Federal Reserve rate cut. In the days following the US election, Bitcoin ETFs once again witnessed massive inflows. According to data compiled by Bloomberg, the Invesco Bitcoin Trust ETF, managed by BlackRock, saw a record daily net inflow of nearly $1.4 billion on November 7th.

Bitcoin futures contracts offered by the Chicago Mercantile Exchange are a popular way for US institutions to bet on the future price of Bitcoin. The exchange reported on November 8th that Bitcoin's premium exceeded 14%, while it had been below 10% for most of the past six months, reflecting the bullish sentiment of institutional investors towards the Bitcoin market.

Data from the options market also reveals investor expectations of continued Bitcoin price gains. Over $2.8 billion has been wagered on Bitcoin breaking through $90,000, demonstrating market confidence in further price increases.

During his campaign, Trump made supporting cryptocurrencies a key policy, pledging to protect and boost the US crypto industry, loosen the Securities and Exchange Commission's regulations on cryptocurrencies, and make the US the "global crypto capital." Trump's win is seen as the most favorable outcome for crypto assets, providing strong support for Bitcoin prices.

In its latest report, Bernstein Research predicts that Bitcoin's price could reach as high as $200,000 by the end of 2025. This prediction reflects the long-term value that institutional investors see in Bitcoin.

In conclusion, the continued rise in Bitcoin prices reflects the market's bullish sentiment on cryptocurrencies, which has been further amplified by Trump's victory. As more and more institutional investors enter the Bitcoin market, the price of Bitcoin is expected to continue climbing and exert a greater impact on global financial markets.