Key Takeaways:
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has been on a roll since Donald Trump was declared the winner of the U.S. presidential elections. On Sunday, the flagship digital asset topped $81,497, climbing as much as 6.1% to set yet another all-time high after the President-elect marked a clean sweep of the seven battleground states and made the biggest political comeback in history.
Bitcoin Registers New ATH At $81,497 Amid Expectations of Further Surges
Experts are anticipating Bitcoin to further upside before the 47th President takes office on January 20, 2025, as they believe that rally has just begun and has a long way to go. In an X post, Tuur Deeester, a Bitcoin expert, wrote that traders shouldn’t make any impulsive moves and “HODling” will do the work for them.
HODL is a popular crypto investment strategy that involves buying digital assets and holding onto them for an extended period, regardless of market volatility. The term stands for “Hold On for Dear Life”.
Crypto analytics firm Glassnode’s lead analyst, James Check, also echoed the sentiment, elaborating that although Bitcoin recorded all-time highs, the distance between its price and the 200-day Moving Average (DMA) is still “cooled off.”
Pseudonymous crypto trader “Cantonese Cat” claimed that the leading cryptocurrency’s price surge was not driven by a “liquidity grab” of leveraged positions, but it just wanted to pump. He speculates that the price could either go back down or it was driven by “pure spot supply shock and huge demand”.
After breaking its $73,679 all-time high from mid-March on November 5, BTC recorded new highs on November 6 at $76,000 and then broke the metric once again to move past $77,000 on November 8.
Investor Interest in Bitcoin At Levels Previously Observed During 2021 Bull Run
Meanwhile, the spot Bitcoin exchange-traded funds (ETFs) posted a record daily net inflows on November 7, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charts with $1.4 billion in inflows. The Bitcoin-backed investment fund from the $9 trillion investment manager reportedly holds $35 billion worth the cryptocurrency in assets under management (AUM).
The Bitcoin Fear and Greed Index, a metric that measures market sentiment for BTC, notched its highest “Greed” score in nearly seven months, 78 out of 100. The last time the index hit “Extreme Greed” was on April 12, when the leading cryptocurrency was trading at around $70,000 awaiting its high-anticipated 2024 halving event.
BTC hit the 75-100 Extreme Greed zone on October 31 and has been hovering between 70 and 78 since the past week after Donald Trump won the election against Kamala Harris in a landslide.
Bitcoin’s rally to multiple all-time highs seems to have woken up more retail investors as Google search interest for the “digital gold” has risen substantially. While the current search interest is far from the peak volumes seen during the 2021 bull run, it still scored 48 out of 100, as per Google Trends data.
Bullish sentiment for Bitcoin has been fueled by Trump’s commanding victory and a large number of pro-crypto politicians winning seats in the US Senate and House of Representatives.
Trump Promises To Fire Current SEC Chair And Enact Pro-Crypto Policies
Market participants also stand to benefit from a potentially more lenient Securities and Exchange Commission (SEC), which under the term of Biden-appointed chairman Gary Gensler, has taken a “regulation by enforcement” strategy that has stifled growth and innovation in the sector.
The agency began its enforcement regime following the 2022 “crypto winter” that routed the market, leading to a litany of bankruptcies of several major industry players, such as crypto exchange FTX, lending and borrowing platform Celsius, and Bitcoin miner Core Scientific, among others.
Crypto firms have spent upwards of $100 million towards the campaigns of pro-crypto candidates, including Trump, who has promised to fire Gensler and ramp up Bitcoin mining to make America the “Crypto Capital” of the world.
SEC Commissioners Mark Uyeda and Hester Peirce are seen as potential replacements for Gary Gensler. Both have been critical of the agency’s regulatory approach towards crypto, even calling the former Goldman Sachs banker’s policies a “disaster”.
The former President also vowed to create a Bitcoin Strategic Reserve that will hold BTC as part of the government’s Treasury assets.
Noelle Acheson, author of the ‘Crypto Is Macro Now’ newsletter wrote in her latest edition that Trump has promised supportive regulation for the industry, and the “sweep” of the House and Senate will make the passage of crypto bills easier and “more likely”.
At the time of writing, Bitcoin (BTC) is trading at $80,820 – up $1.53% in the last 24 hours.
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