Bitcoin Breaks New Ground, Reaches $90,000 Level on Expectations of Trump presidency
A New All-Time High
Bitcoin has broken through the $90,000 level, marking a new all-time high in a rally that shows no signs of easing. The world’s biggest cryptocurrency has been one of the most eye-catching movers since the US presidential election and touched a record of $93,480 before paring gains.
Record High
It was last down slightly at $88,185, but has risen 32% since the Nov. 5 election. Smaller peer ether has also risen 37% since Election Day, while dogecoin, an alternative, volatile token promoted by billionaire Trump-ally Elon Musk, was up more than 150%.
Market Outlook
"What you’ve seen since the election is the market hoping or realizing what that could mean for bitcoin in the medium to long term – a pro-bitcoin administration, Senate, and potential legislation that not only gives U.S. citizens the right to self-custody bitcoin but potentially for bitcoin to be a strategic reserve asset for the U.S. Treasury," said Damon Polistina, head of research at Eaglebrook.
Regulatory uncertainty has been a major cloud hanging over the sector, and a headwind to advisors allocating for their clients to bitcoin. Trump’s campaign promise to make the United States the "crypto capital of the planet" and to accumulate a national stockpile of bitcoin has driven a speculative surge in crypto mining and trading stocks.
Clearing the Way
The election results will open up the ability for large, regulated businesses like banks, custodians, and exchanges to engage with public blockchain technology in the way that they haven’t in the past," said Zach Pandl, head of research at Grayscale Investments.
Software company and bitcoin investor MicroStrategy announced it had spent about $2 billion buying bitcoin between October 31 and November 10. Shares scaled a record high on Tuesday. Crypto investors see an end to increased scrutiny from the Securities and Exchange Commission under Trump, with Trump and his sons announcing a new crypto business, World Liberty Financial, in September.
Outlook
"Many people believe that we will inevitably get to bitcoin at $100k," said JJ Kinahan, CEO of IG North America and president of its tastytrade retail brokerage. "I expect bitcoin to continue building momentum, at least until after the inauguration when we find out what the real plans to get there are."
Caution Ahead
However, others advise investors against getting caught up in the crypto frenzy. "With bitcoin reaching $90K and hitting a new all-time high, investors should be cautious about the potential volatility ahead," said Georgi Koreli, CEO of Hinkal, a blockchain-based private trading platform. "This doesn’t mean that we will not see $95K or even $100K soon, but rather that BTC might pause or slide back to regain its strength."
Conclusion
In conclusion, bitcoin’s new all-time high is a significant milestone that reflects the growing optimism and excitement in the cryptocurrency space. With the election of Donald Trump as US President, investors are hoping that the administration will be favorable to the growth and adoption of digital assets.
FAQs
Q: What has driven the growth of bitcoin?
A: The growth of bitcoin can be attributed to the upcoming presidency of Donald Trump and the expected favorable regulatory environment.
Q: What has been the impact of the election on other cryptocurrencies?
A: Smaller peer ether has risen 37% since Election Day, while dogecoin has risen over 150%.
Q: What is the outlook for bitcoin’s growth?
A: Many expect bitcoin to continue building momentum, but some advise investors to be cautious about the potential volatility ahead.
Q: Will the new administration be favorable to the growth of digital assets?
A: While it is unclear how or when, some believe that the new administration will be favorable to the growth of digital assets and potentially lead to increased adoption and growth.