The "Trump trade" continues to have an impact, with virtual currencies seeing another surge.

Bitcoin Reaches a New All-Time High

Data shows that Bitcoin has surged 11%, surpassing $89,000 in price with a total market value exceeding $1.76 trillion. Dogecoin, strongly backed by Elon Musk, has doubled in a week, jumping 27%. Over the past 24 hours, more than 160,000 investors have been liquidated in the cryptocurrency market.

Source: uSMART SG

The futures premium for Bitcoin has soared as investors remain optimistic about the potential positive impacts of President-elect Trump. According to data from the derivatives exchange Deribit, bets on Bitcoin surpassing $90,000 have exceeded $2.8 billion.

Reports indicate that President-elect Trump is preparing to adopt a more lenient stance toward cryptocurrencies within the U.S. government. He is looking for candidates for key positions who are friendly to the crypto industry, and his senior advisors have been consulting crypto executives on potential changes to federal policy. Initial discussions have focused on various financial regulatory bodies, including the U.S. Securities and Exchange Commission (SEC).

During his campaign, Trump embraced digital assets, promising to make the U.S. the "crypto capital of the world" and building a national Bitcoin reserve.

Jeff Dorman, Chief Investment Officer and co-founder of asset management firm Arca, stated in a research report, "The outcome of the 2024 U.S. election is a revival moment for the crypto industry."

"It is rare for such significant events to occur in the crypto space. When they do, they immediately expand the world's collective perception of the potential of the crypto movement and where this technology is headed."

Data from analytics firm Ortex indicates that between November 6 and November 8, traders shorting MicroStrategy, one of the biggest supporters of Bitcoin, lost over $1.2 billion, with year-to-date losses exceeding $6 billion.

Crypto Stocks Soar

On Monday (November 11), U.S. and European stock markets collectively closed higher. The Dow Jones rose 0.69%, the S&P 500 climbed 0.1%, and the Nasdaq added 0.06%, all reaching record highs. Cryptocurrency-related stocks surged, with Canaan Inc. up 41% and MicroStrategy soaring over 25% to an intraday all-time high. The ProShares Bitcoin Strategy ETF rose more than 27%, while Coinbase jumped 19%.

In Ethereum ETFs, the Ether-USD reference rate (ETHA) rose by 14.24%. Bitcoin ETFs saw a 13.46% increase in the Bitcoin reference rate (IBIT).

Mercurity Fintech ADR ended up 81%, and MARA Holdings rose nearly 30%, marking its highest intraday level since November 2021.

Software company and major Bitcoin investor MicroStrategy announced that it purchased approximately $2 billion worth of Bitcoin between October 31 and November 10, leading to a 26% jump in its stock price, which continued to rise after hours.

This surge extended across the broader cryptocurrency market, boosting smaller tokens like Ethereum and even Dogecoin (initially created as a meme currency).

Crypto investors are hopeful that the scrutiny imposed by SEC Chairman Gary Gensler (whom Trump vowed to replace) might soon be relaxed. In September, Trump also launched a new cryptocurrency joint venture called World Liberty Financial.

What Is Driving Bitcoin's Rise?

This post-election surge aligns with historical trends: Bitcoin often rises after U.S. presidential elections. Following Obama's 2012 victory, Bitcoin rose 87% within 90 days. After Trump's 2016 win, Bitcoin gained 44%, and it soared 145% after Biden’s 2020 win. Each election year coincided with Bitcoin's halving—a four-year event that reduces mining rewards by 50%.

The current Bitcoin price surge is largely driven by speculation about potential regulatory changes favorable to cryptocurrencies in the U.S. Reports indicate that Trump may appoint pro-crypto figures to key regulatory positions, which led to an 8% increase in Bitcoin’s value within a day of the election results.

There are reports that Trump is considering replacing current SEC Chairman Gary Gensler with pro-crypto officials like Mark Uyeda and Paul Atkins. This move could ease regulatory pressure on the industry. Edul Patel, CEO of Mudrex, noted that breaking the $89,500 resistance level is a significant milestone for Bitcoin, which is currently stabilizing around $88,300.

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