New Delhi:
Bitcoin’s record-breaking rally took the digital asset past US$89,000. With this, the overall value of the crypto market has reached above the pandemic-era peak. The reason is that traders are betting on America’s newly elected President Donald Trump returning to power.
According to Bloomberg, Bitcoin has jumped about 32 percent since the US elections on November 5 and on Tuesday morning it reached an all-time high of US $ 89599. By 9:25 am in Singapore, this cryptocurrency reached US $ 89,165.
Also read: What is cryptocurrency…?
Impact of possible policies!
Possible policies in the US in the coming times are being said to be the major reason behind the surge in cryptocurrency. In fact, Trump has vowed to make crypto regulations more favorable and his Republican Party is strengthening its grip on Congress to advance his agenda.
His other announcements include establishing a strategic US Bitcoin stockpile and promoting its domestic mining.
Trump’s stance is a major change following a crackdown on the industry by the Securities Exchange Commission under the Biden administration. CoinGecko data shows that this change has promoted speculation of large and small tokens, increasing the value of the digital asset to about US $ 3.1 trillion.
Big game of cryptocurrency
Chris Weston, head of research at Pepperstone Group, wrote in a note that Bitcoin is in ‘beast mode’. For traders who are not yet ready, the question is whether there is still room to chase this red-hot play or wait for a slight pullback and some downsizing of the bullish trend.
According to data from Deribit exchange, investors in the options market are betting that Bitcoin will cross $100,000 by the end of the year.
Meanwhile, software firm MicroStrategy bought 27,200 bitcoins worth about US$2 billion between October 31 and November 10.
Traders are paying less attention to questions like how quickly Trump will implement his agenda or whether the strategic stockpile is a realistic move.
Value more than doubled, rally continues
The value of Bitcoin has more than doubled so far in 2024, which has been helped by high demand for US ETFs and the Federal Reserve’s decision to cut interest rates. The growth in crypto is higher than the returns from global stock and gold investments.
Katy Stockton, technical analyst at Fairlead Strategies, has said in her research note that after such a sharp rise, it would be natural to see a digestion period. He recommended ‘short term neutral bias’.
Let us tell you that digital-asset companies spent heavily during the US election campaign to promote candidates favorable to their interests. His support turned Bitcoin into a series of so-called Trump trades.
