This was announced almost a week ago and it’s not surprising. Driven by the election of Donald Trump and the growing appetite of institutional investors, the first of cryptocurrencies crossed the $89,000 mark. A surge that propels the total capitalization of the crypto market beyond $3.1 trillion, even surpassing the peaks reached during the pandemic. A sum close to certain GDPs of the greatest world powers such as Germany or China.
After hitting an all-time high of $89,599 on Tuesday morning, as of this writing, Bitcoin is now trading at $88,875. A meteoric rise which is part of a fundamental movement: the digital currency has already shown an increase of 110% since January, significantly outperforming the rest of world stocks and the price of gold.
The Trump effect which boosts investors
The Republican president, who once called cryptocurrencies a scam, has made a dramatic turnaround. Its program already provides for a large relaxation of regulationscontrasting radically with the restrictive policy of the SEC (Securities and Exchange Commission) put in place under the Biden government.
Donald Trump even harbors the ambition of establishing a strategic reserve of Bitcoin and make the United States the cryptocurrency mining capital of the world. This prospect triggered a wave of speculative buying, affecting both large and small cryptocurrencies – like Dogecoin, supported by Elon Musk, which doubled in value.
Wall Street steps into the breach
Obviously, the financial giants did not sit idly by. BlackRock’s Bitcoin fund, valued at $39 billion, saw record trading volume on Monday. On the CME Group, Bitcoin and Ether futures are hitting all-time highs, signaling maximum engagement from U.S. investors. Bets are multiplying on the options market, some counting on a Bitcoin at $100,000 by the end of 2024.
“ Bitcoin has gone into supercharged mode », summarizes Chris Weston, manager at Pepperstone Group. “ The question for traders who are not yet positioned is whether to continue following this explosive movement or wait for a technical pullback.” A caution that is shared Katie Stockton, analyst at Fairlead Strategies: “ After such an outbreak, a consolidation phase would be natural “.
For now, investors do not seem concerned by questions regarding the speed of implementation of Trump’s program or the feasibility of establishing a strategic Bitcoin reserve. The lure of short-term gain seemsfor the moment, prevail over the rest.
- Bitcoin reached an all-time high of $89,000, boosted by the election of Trump and an influx of institutional investments.
- Trump plans easing of crypto regulations and plans to create a Bitcoin reserve.
- Despite the caution of some analysts, investors continue to bet on an explosive rise, targeting Bitcoin at $100,000 by the end of 2024.
