With Trump's victory, Bitcoin is experiencing another explosion. On November 12, Bitcoin prices approached $90,000, setting a new historical high. Bitcoin had just broken through the $80,000 mark, and within less than two days, it was moving towards the target price of $90,000. Over the past week, Bitcoin's increase reached 29.66%. From the beginning of the year to now, Bitcoin has surged 108.03%.
As the price of cryptocurrencies skyrockets, Bitcoin's market value surpasses that of silver, becoming the eighth largest asset in the world. At the same time, the overall cryptocurrency market is rising. The total market value of global cryptocurrencies has exceeded the historical high set in November 2021, reaching $3.1 trillion.
Market bullish sentiment remains high, and further increases are expected. Analysts believe that the 'Trump trade' is realizing its power; despite facing regulatory risks and market volatility, the long-term investment value of Bitcoin is still viewed positively. At the same time, the relaxation of regulatory policies in the U.S. may bring a new round of benefits to the cryptocurrency market.
Bitcoin approaches the $90,000 mark
Since breaking through the $80,000 mark, Bitcoin has continued to rise over the past two days.
On November 11, Bitcoin surged from $80,000 to around $84,000. On the morning of November 12, OKX's quotes showed Bitcoin rising past $89,000, approaching $90,000, with a 24H increase of 11.52%, setting a new historical high.
Apart from Bitcoin, the overall cryptocurrency market has also seen an increase. Ethereum has risen past $3,345, reaching its highest point since the end of July; Dogecoin (DOGE) has increased by 19.57%; CRO has risen by 33.99% during the day; WLD has increased by 27.57% during the day.
The cryptocurrency spot ETFs in the Hong Kong stock market have also risen collectively. As of the time of writing, Bosera Bitcoin has risen nearly 15%, Huaxia Bitcoin has risen over 10%, Huaxia Ethereum has risen over 4%, and Jiashuo Ethereum has risen over 3%.
Trump, who frequently releases favorable signals for cryptocurrency, winning the U.S. election, is regarded as one of the catalysts for this round of market rally.
During the campaign, Trump not only publicly supported cryptocurrency assets but also took the lead in accepting cryptocurrency donations. Founders of cryptocurrency exchanges like Gemini, partners from Sequoia Capital, co-founders of Kraken, chief legal officers of Ripple, and CEOs of BitGo have all donated to Trump.
'I will be the most supportive president of innovation and Bitcoin in the U.S.' At the 2024 Bitcoin conference, Trump claimed that he would ensure the U.S. becomes the global center of cryptocurrency and a superpower in Bitcoin. If he can return to the White House, he will list Bitcoin as a strategic reserve asset for the U.S.
Data shows that currently, the U.S. government holds over 210,000 Bitcoins, valued at about $14 billion. Trump has stated that he will ensure the government retains 100% of its Bitcoin holdings after taking office. The market believes this also reduces the potential negative impact of the U.S. government selling Bitcoin on the market.
Jeffrey Ding, chief analyst at HashKey Group, told (China Times) reporters that Trump will fulfill his promise that 'Bitcoin will become a U.S. reserve asset.' If this favorable factor is implemented, the existing cryptocurrencies will not flow into the market for sale, significantly reducing the potential bearish expectations in the market; at the same time, Bitcoin, as a U.S. reserve asset, may see government procurement actions. If this move materializes, it will open new upward space for the market.
At the same time, institutions are increasing their Bitcoin holdings, further intensifying the market's bullish sentiment. The founder of MicroStrategy stated on the X platform that MicroStrategy purchased 27,200 Bitcoins for $2.03 billion, with an average purchase price of $74,463. As of November 10, 2024, MicroStrategy's Bitcoin holdings reached 279,420 BTC. Data disclosed by Arkham on X also shows that Tesla's Bitcoin holdings are valued at $1 billion.
Zhao Wei, a senior researcher at OKX Research Institute, stated in an interview with (China Times) that as one of the major economies globally, the economic and cryptocurrency policies of the U.S. are significant factors influencing the cryptocurrency market. Although Trump's potential return to office is seen as a positive for the market, attention must be paid to the specific cryptocurrency policies after he officially takes office, changes in regulation by other U.S. regulatory agencies regarding the cryptocurrency market, and the integration of the cryptocurrency market with the traditional financial system, while being wary of how these factors could bring volatility and uncertainty to the cryptocurrency market.
In addition, beyond whether Bitcoin and the cryptocurrency market can accelerate the compliance process, the market's demand for transparency and security in cryptocurrency trading will continue to rise. With ongoing technological innovation and market scale growth, the industry may face new opportunities and challenges.
Relaxation of regulations may bring a new round of benefits to the cryptocurrency market.
With Bitcoin breaking through $89,000, its market value has surpassed that of silver and the Vanguard Total Stock Market ETF, ranking eighth in global asset market value, currently around $1.757 trillion.
Previously, regulatory forces represented by the U.S. Securities and Exchange Commission (SEC) had implemented strict policies on cryptocurrencies. Public data from the SEC shows that in 2023, the agency initiated 46 enforcement actions against the cryptocurrency sector, an increase of 53% compared to 2022. By the end of 2023, the total fines against cryptocurrency market participants amounted to approximately $2.89 billion, of which $281 million came from settlements reached that year.
According to data disclosed by the Blockchain Association, since Gary Gensler became chairman of the U.S. SEC, the U.S. cryptocurrency industry has spent over $400 million in response to the agency's enforcement actions.
Jeffrey Ding believes that the 'Trump trade' is now beginning to truly realize its power, and there is still room for Bitcoin to rise in the future. On the regulatory front, regardless of who becomes the SEC chairperson, there will be a relaxation of regulations. In particular, the passage and implementation of the FIT21 bill may open new doors for the cryptocurrency market.
The Bitcoin financial services and infrastructure company NYDIG also emphasized the trend of regulatory openness in a report, pointing out that under the leadership of the new U.S. government, legislative proposals such as the (Financial Innovation and Technology (FIT21) Act) and stablecoin regulations may gain support.
Meanwhile, the market believes that the Web3 industry will also welcome new development opportunities, with technological innovation and regulatory policies together shaping the future market landscape. In the new economic environment, cryptocurrencies with strong financial attributes, such as Bitcoin and stablecoins, will continue to hold an important position in the market. These assets are no longer merely trading tools but have become means of value storage, attracting the attention of long-term traders and institutions, and may encounter new development opportunities in an innovation-driven market environment. Additionally, innovative fields like Web3 and decentralized finance (DeFi) will continue to lead the development of the cryptocurrency market.
Meanwhile, with the proliferation of cryptocurrency assets and the increasing number of users, the market's focus on privacy protection and security will continue to grow. Technological advancements will continuously enhance the privacy and security of transactions, providing users with a safer and more reliable cryptocurrency asset experience. After the Republican victory, the new U.S. government will seize the new round of Web3 opportunities. As Trump vigorously promotes the return of manufacturing, enhancing the real economy, the Web3 industry may become a new growth point for the virtual economy.
