Bitcoin Surges Past $89,000 Amid Crypto Market Euphoria Following Trump's Election Victory
Bitcoin reached a new peak on Monday, continuing its upward trajectory in the cryptocurrency market after Donald Trump's election victory. The leading cryptocurrency surged over 12%, reaching a price of $89,174, according to Coin Metrics. It briefly hit a record high of $89,623 earlier in the day. Meanwhile, Ether also saw significant gains, rising more than 7% to $3,371.79, following a remarkable 30% increase over the past week that brought it back above the $3,000 threshold over the weekend. Additionally, the decentralized finance token associated with Cardano increased by 4.7%, while Dogecoin experienced a substantial rise of nearly 24%. In the regular trading session on Monday, shares of Coinbase closed up by 19.8%, and MicroStrategy saw an increase of more than 25.7%. Both companies continued to perform well in extended trading hours.
Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, pointed out that the ongoing rally in cryptocurrencies is fueled by a sense of "euphoria" in the market following Trump's presidential win last week. "His commitment to fully support the crypto sector has propelled Bitcoin to new heights," she stated in a research note on Monday. "Trump's shift in stance towards the industry, along with his promise to establish the U.S. as the global crypto capital, has sparked optimism among investors. Speculators are anticipating a more favorable regulatory environment, which could lead to the establishment of a reserve crypto fund, thereby boosting demand further."
During his campaign, Trump made several promises to the crypto community, including his vision of making the U.S. the "crypto capital of the planet" and advocating for all Bitcoin mining to occur within the country. He also expressed intentions to remove U.S. Securities and Exchange Commission Chairman Gary Gensler, who has adopted a stringent approach towards cryptocurrencies, despite lacking the authority to do so.
In a research note released last week, Citi strategists emphasized that cryptocurrencies have remained one of the few sectors benefiting from Trump's election. "The anticipated crypto-friendly policies of Trump's administration are expected to provide regulatory clarity in the U.S.," noted the strategists, led by David Glass. They observed that since the election, spot crypto ETFs have experienced some of their largest inflows on record. "In particular, net inflows for BTC and ETH ETFs in the two days following the election amounted to $2.01 billion and $132 million, respectively," they reported. "We believe ETF flows will continue to be a significant driver of Bitcoin's performance."
Looking ahead, analysts are optimistic about the future of cryptocurrencies, with many predicting that Bitcoin could reach the $100,000 mark by the end of the year, driven by the current market momentum and investor sentiment.