Thursday, November 14, 2024
HomeNewsBitcoin Hits New Record at $81,000: Market Soars Amid Trump Victory and...

Bitcoin Hits New Record at $81,000: Market Soars Amid Trump Victory and Renewed Institutional Interest

NTI: Bitcoin (BTC) surged past the $81,000 mark, hitting an all-time high and marking a 5.52% increase in the last 24 hours. This historic milestone has pushed Bitcoin’s market capitalization to a staggering $1.5 trillion. Analysts point to recent political shifts, particularly Donald Trump’s emphatic win in the U.S. presidential election, as catalysts for this bullish rally, which has seen BTC gain over 18% in just a week.

The optimism in the crypto markets reflects increased institutional interest, coupled with investor hopes for clearer regulatory frameworks under the new administration. Sumit Gupta, co-founder of CoinDCX, noted that the record-breaking price levels for BTC highlight “renewed market optimism and a favorable regulatory outlook.” He added that more supportive policies could lead to wider institutional adoption and help the sector emerge from the so-called crypto winter.

Ethereum, on the Other Hand, Lags Behind

While Bitcoin continues its upward trajectory, Ethereum (ETH), the second-largest cryptocurrency, recorded a 0.98% drop to $3,163 over the past day, according to Coindesk. Yet some analysts believe Ethereum might soon benefit from the positive sentiment following Bitcoin’s peak.

Industry Leaders Speak on Trump’s Crypto-Friendly Stance

Balaji Srihari, head of business at CoinSwitch, emphasized the impact of the election results, explaining that Trump’s presidency has “lifted the regulatory weight” from the crypto industry. “Since the November 5 election results, Bitcoin has gained over 30%, reflecting a fresh wave of confidence among investors. Institutional investors are now actively accumulating Bitcoin, offering it to customers through exchange-traded funds (ETFs), which is creating a promising regulatory environment and driving volumes,” he said.

At CoinSwitch, trading volumes have surged 350% since the election results, and Srihari predicts Bitcoin could maintain its position above $80,000, possibly entering a new bull cycle.

Market Confidence High with Bullish Indicators Across BTC, Future Trades

Edul Patel, CEO of Mudrex, pointed out that the BTC fear-greed index has reached “Extreme Greed,” indicating strong momentum. Futures positions have also swelled, with $2.8 billion in BTC long positions trading at $90,000. “Ethereum has also seen support at $3,200 amid positive sentiment following Bitcoin’s rise. This momentum could extend across the broader crypto markets,” Patel noted. He cited Bitcoin’s next resistance at $82,500 and a solid support level at $75,600 as key technical indicators.

Analysts See Parallels with the 2020 Bull Run, Predict Potential Move to $100,000

The current rally has drawn comparisons to the 2020 bull run, which lasted a year, although the scale and market size are now significantly larger. Vikram Subburaj, CEO of Giottus Crypto Platform, noted that BTC’s current levels have spurred speculation about a potential push toward $90,000 and possibly even $100,000, as other top cryptocurrencies follow suit.

Trump’s Shift from Crypto Skeptic to Advocate: A Turning Point for Digital Assets?

Trump, once a skeptic, has embraced crypto with promises to bring it mainstream. In a recent address, he proposed the creation of a sovereign “Bitcoin Reserve” akin to gold or oil. “If crypto is going to define the future, I want it to be mined, minted, and made in the U.S.A.,” he said, echoing a new vision for digital assets in America.

At a Nashville conference, he predicted Bitcoin could eventually surpass gold’s $16 trillion market cap, suggesting that U.S. holdings of Bitcoin might even help reduce the national debt. This newfound advocacy has sparked enthusiasm among the crypto community, which now eyes potential regulatory clarity and institutional support under Trump’s administration.

RELATED ARTICLES