Bitcoin is approaching $80,000 for the first time, boosted by President-elect Donald Trump’s backing for digital assets and the potential impact of pro-crypto politicians in Congress. In a surprise weekend bounce, the cryptocurrency climbed beyond $79,000 for the first price ever, causing $280 million in short positions throughout the crypto market to be liquidated.
Bitcoin rose as much as 4.3 percent, reaching a record high of $79,771 on November 10, and stood slightly under $79,000 as of 2:05 p.m. in Singapore. Other cryptocurrencies, including as Cardano and the meme favorite Dogecoin, experienced significant rises.
BTC’s 4% increase brought its seven-day gains to more than 16%, fueled by two significant events: Republican Donald Trump’s election as the next US president and the Federal Reserve’s decision to decrease interest rates by 25 basis points. Both are viewed as positive developments for the cryptocurrency market.
Weekend surges are commonly regarded as positive in cryptocurrency markets because trading volumes tend to fall when institutional investors and experienced traders are less active. This reduced liquidity can result in quicker price changes, where even minor trades can have a big influence.
The significant weekend spike could indicate that ordinary investors are driving the price increase, a positive indicator that implies broad-based interest and participation from smaller investors rather than just institutional players.
Throughout his campaign, Donald Trump promised to place the United States as a leader in the digital asset field. His proposed plans include building up Bitcoin reserves and appointing authorities to manage the industry.
Bitcoin has grown by about 90% in 2024, driven by strong demand for US exchange-traded funds (ETFs) and interest rate cuts from the Federal Reserve, outperforming traditional investments such as stocks and gold.
Trump’s pro-crypto posture contrasts starkly with that of President Joe Biden, whose administration has been more cautious about digital assets. Biden’s Securities and Exchange Commission (SEC), led by Gary Gensler, has expressed concern about potential fraud and misbehavior in the cryptocurrency market. The SEC increased its regulation of digital assets in 2022, following the collapse of Sam Bankman-Fried’s FTX exchange.