The Trump Effect in Cryptocurrencies Continues: Bitcoin Soars to a Record $81,000
The election victory of Donald Trump has caused significant turbulence in the cryptocurrency world. Following Trump's win, Bitcoin made a historic leap, surpassing $81,000 for the first time and setting a new record. As the cryptocurrency market continued to enthusiastically respond to this development, substantial gains were recorded during weekend trading.
At the week's closing, Bitcoin established a new record level of $81,730 with an increase of over 6%. Trump's crypto-friendly promises drew attention during his election campaign. He indicated plans to create a Bitcoin reserve and appoint crypto-supportive regulators with the goal of making the U.S. a leader in the crypto asset industry. These promises generated great interest and activity within the cryptocurrency market.
Trump's pro-crypto stance had a positive impact on the markets, leading to a rapid increase in Bitcoin's value. Although uncertainty regarding the feasibility and outcomes of these policies persists, it was evident that investors quickly bought into this expectation.
In addition to Bitcoin, other cryptocurrencies also benefitted positively from Trump's victory. Dogecoin, supported by Elon Musk, saw a notable 30% increase in the last 24 hours. A similar sentiment was observable in the U.S. Trump’s focus on economic policies aimed at internal growth and deregulation increased optimism in stock and credit markets; the S&P 500 celebrated its 50th record level in 2024 following Trump's victory.
Market experts attribute Bitcoin's performance, which has increased by 92% this year, to the launch of crypto-focused exchange-traded funds and Trump's pro-crypto posture. BlackRock’s iShares Bitcoin Trust has become a vivid example of this, experiencing a rapid rise in net inflows after the election.
The rise in Bitcoin was also supported by the Fed's decision to lower interest rates, encouraging investments in higher-risk crypto assets. Trump's policy approach contrasts with former President Joe Biden's distancing from the cryptocurrency sector. During Biden's administration, especially after the market turmoil in 2022 and events like FTX, the SEC criticized and regulated cryptocurrencies rigorously.
The crypto community is filled with expectations regarding the shaping of the Trump administration. Investors are hopeful about the integration and legitimization of cryptocurrencies within the financial system. However, uncertainties still exist regarding how this transformation will occur.
Will the rise of Bitcoin continue? The increase in Bitcoin's price following Trump's election has generated significant excitement among investors. Many commentators predict that Bitcoin could surpass $100,000 by the end of the year. The shaping of potential policies under Trump's administration will be decisive for the future of crypto assets. While hopes are high for this new era in the cryptocurrency world, market participants are awaiting clarity on the details in the coming periods.
The rapid rise has also increased liquidations. According to CoinGlass data, approximately $180 million in short positions were liquidated in the crypto market over the last 12 hours. The greatest losses were suffered by investors in positions against Bitcoin, totaling around $67 million, while Dogecoin and Ether experienced liquidations worth $23 million and $21 million, respectively. During this process, $228 million in long positions were also liquidated. According to the CoinGlass report, at least 218,206 investor positions were liquidated in the last 24 hours, resulting in a total loss of $682.72 million.