With Trump's victory, Bitcoin is once again experiencing a major explosion. On November 12, the price of Bitcoin approached $90,000, setting a new all-time high. Bitcoin had just broken through the $80,000 mark, and in less than two days, it had moved towards the target price of $90,000. Over the past week, Bitcoin has gained 29.66%. Since the beginning of the year, Bitcoin has soared 108.03%.
As the coin price soared, Bitcoin's market capitalization surpassed the market value of silver, becoming the world's eighth-largest asset. At the same time, the cryptocurrency market as a whole has risen. The global cryptocurrency total market value has surpassed the historical high set in November 2021, reaching $3.1 trillion.
The bullish sentiment in the market remains high, and further upside potential is expected. Analysts believe that the "Trump trade" is realizing its power, and although facing regulatory risks and market volatility, the long-term investment value of Bitcoin is still optimistic. At the same time, the relaxation of US regulatory policies may bring a new round of positive news to the crypto market.
Bitcoin approaches the $90,000 mark
Since breaking through the $80,000 mark, the Bitcoin price has continued to rise in the past two days.
On November 11, Bitcoin surged from $80,000, reaching around $84,000. On the morning of November 12, OKX's market data showed that Bitcoin broke through $89,000, approaching $90,000, with a 24-hour increase of 11.52%, setting a new all-time high.
In addition to Bitcoin, the cryptocurrency market as a whole has also seen an upward trend. Ethereum broke through $3,345, reaching its highest point since late July; Dogecoin (DOGE) rose 19.57%; CRO rose 33.99% intraday; WLD rose 27.57% intraday.
Crypto currency spot ETFs in the Hong Kong stock market also collectively rose, with Bosera Bitcoin up nearly 15%, Huaxia Bitcoin up over 10%, Huaxia Ethereum up over 4%, and Jiashi Ethereum up over 3% as of the time of writing.
Trump, who has frequently released positive signals for the cryptocurrency, was seen as one of the catalysts for this round of market rally after winning the US election.
During the campaign, Trump not only publicly supported crypto assets, but also was the first to accept cryptocurrency donations, with Gemini founders, Sequoia Capital partners, Kraken co-founders, Ripple's chief legal officer, and BitGo CEO all donating to Trump.
"I will become the most pro-innovation and pro-Bitcoin president in American history." At the 2024 Bitcoin Conference, Trump claimed that he would ensure that the US becomes the global center of cryptocurrencies and a Bitcoin superpower, and if he returns to the White House, he will list Bitcoin as a US strategic reserve asset.
Data shows that the US government currently owns over 210,000 Bitcoins, worth about $14 billion. Trump had previously stated that he would ensure the government 100% retains the Bitcoins it owns after taking office. The market believes this will also reduce the negative impact on the market that could be caused by the US government selling Bitcoins.
Jeffrey Ding, chief analyst at HashKey Group, told Caixin that Trump will fulfill his promise of "Bitcoin becoming a US reserve asset." Once this positive factor is implemented, the existing cryptocurrencies in the US will not flow into the market for sale, which will greatly reduce the potential negative impact expected by the market; at the same time, with Bitcoin as a US reserve asset, there may be government procurement behavior. Once this is implemented, it will open up new upside space for the market.
At the same time, institutions are increasing their Bitcoin holdings, further fueling the market's bullish sentiment. MicroStrategy founder stated on the X platform that MicroStrategy purchased 27,200 Bitcoins at a price of $2.03 billion, with an average purchase price of $74,463. As of November 10, 2024, MicroStrategy's Bitcoin holdings reached 279,420 BTC. Arkham's disclosed data also shows that Tesla's Bitcoin holdings are now worth $1 billion.
OKX Research Institute senior researcher Zhao Wei said in an interview with Caixin that the US, as one of the world's major economies, its economic policies and crypto policies are important factors affecting the crypto market. Although Trump's re-election is seen as positive by the market, attention needs to be paid to his specific crypto policies after taking office, changes in the regulation of the crypto market by other US regulatory agencies, and the integration of the crypto market with the traditional financial system, and be wary of the volatility and uncertainty these factors may bring to the crypto market.
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In addition, in addition to whether Bitcoin and the crypto market can accelerate the compliance process, the market's demand for the transparency and security of crypto transactions will also continue to increase. With the continuous innovation and growth of the market, the industry may face new opportunities and challenges.
Regulatory relaxation may bring a new round of positive news to the crypto market
With Bitcoin breaking through $89,000, its market capitalization has surpassed silver and the Vanguard Total Stock Market ETF, ranking eighth in the global asset market value, currently around $1.757 trillion.
Previously, regulatory authorities represented by the US Securities and Exchange Commission (SEC) have implemented strict policies on cryptocurrencies. SEC data shows that in 2023, the agency initiated 46 enforcement actions in the cryptocurrency field, an increase of 53% compared to 2022. By the end of 2023, the total fines imposed on crypto market participants were about $2.89 billion, of which $281 million came from settlements reached that year.
According to data disclosed by the Blockchain Association, since Gary Gensler took over as SEC chairman, the US crypto industry has spent over $400 million to deal with the agency's enforcement actions.
Jeffrey Ding believes that the "Trump trade" is now beginning to truly realize its power, and Bitcoin still has room for further upside. At the regulatory level, regardless of who becomes the new SEC chairman, there will be a relaxation of regulations. Especially the passage and implementation of the FIT21 Act may open a new door for the crypto market.
NYDIG, a Bitcoin financial services and infrastructure company, also emphasized the trend of regulatory openness in a report, pointing out that under the leadership of the new US government, legislative proposals such as the Financial Innovation and Technology (FIT21) Act and stablecoin regulations are likely to receive support.
At the same time, the market believes that the Web3 industry will also usher in new development opportunities, with technological innovation and regulatory policies jointly shaping the future market landscape. In the new economic environment, crypto assets with strong financial attributes, such as Bitcoin and stablecoins, will continue to occupy an important position in the market, no longer just as trading tools, but as a means of value storage, attracting the attention of long-term traders and institutions, and may usher in new development opportunities in the innovation-driven market environment. In addition, innovative areas such as Web3 and decentralized finance (DeFi) will continue to lead the development of the crypto market.
At the same time, with the popularization of crypto assets and the increasing number of users, the market's attention to privacy protection and security will continue to increase, and technological progress will also continuously improve the privacy and security of transactions, providing users with a more secure and reliable crypto asset experience. After the Republican victory, the new US government will seize the new round of Web3 opportunities. While Trump is vigorously promoting the return of manufacturing, boosting the real economy, the Web3 industry may become a new virtual economic growth point.
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