Bitcoin touched another high on November 11, as the rally in cryptocurrencies continued following Donald Trump’s election win, as detailed in a report by CNBC.
The price of the flagship cryptocurrency was last higher by more than 12 per cent at $89,174, according to Coin Metrics. Recently, it hit a fresh high of $89,623. Ether was up more than 7 per cent to $3,371.79 after a 30 per cent gain in the past week that pushed it back over the $3,000 mark over the weekend, the CNBC report explained further.
The decentralized finance token tied to Cardano ticked 4.7 per cent higher. Dogecoin continued to rise, up almost 24 per cent. In the regular trading session on November 11, Coinbase closed up 19.8 per cent, while MicroStrategy advanced more than 25.7 per cent. Both stocks were higher in extended trading as well.
Euphoria in the Crypto market unleashed by Trump’s victory
Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, noted that crypto’s march higher comes amid “euphoria” in the market unleashed by Trump’s presidential win last week.
“His pledge to go all in on crypto has sent Bitcoin to fresh heady heights,” she said in a research note Monday. “He’s made an about turn on supporting the industry and is now vowing to turn the US into the crypto capital of the world. Bitcoin speculators are betting on a more clement regulatory environment, and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand.”
On the campaign trail, Trump made a slew of promises to the crypto industry, including making the US the “crypto capital of the planet” and insisting that all bitcoin should be mined in the country.
He also pledged to unseat US Securities and Exchange Commission Chairman Gary Gensler, who has taken an aggressive approach to crypto, despite the fact that the president does not have the power to do so. In a research note last week, Citi strategists highlighted that crypto had been one of the “few Trump trades that has yet to retrace.”
“Part of the reason is due to the anticipated crypto-friendly nature of Trump’s administration, which investors hope will translate into regulatory clarity in the US,” the strategists, led by David Glass, said.
They noted that since the election, spot crypto ETFs had seen some of their largest-ever inflows. “Specifically, net inflows for BTC and ETH ETFs in the two days post-election were $2.01bn and $132mn, respectively,” they said. “We continue to see ETF flows as the main driver of Bitcoin returns.”
Looking ahead, some analysts expect crypto to continue to rise, with a number saying bitcoin is on track to hit the $100,000 milestone by the end of the year.
Market participants and crypto enthusiasts will follow these developments carefully as they will help them make informed investment decisions in the crypto space.