Bitcoin, the world’s largest cryptocurrency, reached a new all-time high of $79,790 on Sunday, November 10, 2024, at approximately 1:35 PM Singapore time. This latest surge has come a mere 4 days after it had set a record of $75,577 on, November 6th. The cryptocurrency price has risen by 107 percent within the last one year and has even rose by 32 percent with the last one month.
The rise in Bitcoin prices in the recent past can be blamed on the outcome of the American presidential election in which Donald Trump emerged victorious against Kamala Harris. Enthusiasm for digital currency started surging after former president Donald Trump signed a bill to promote cryptocurrency and vowed to turn the United States into a “crypto nation. In the course of his campaign visit, Trump vowed to form the crypto advisory council, encourage the mining of bitcoins in the United States, and create a strategic national coin reserve.
The cryptocurrency market has reacted positively to the U.S. elections, with Bitcoin rising over 90% in the 90 days following the elections in both 2012 and 2016, as well as this year. This has happened partly because election years have aligned with Bitcoin halving, which has caused a reduction in the supply of cryptocurrency. It is also important to note that those final returns have, in many cases, been more indicative of changes in the Federal Reserve policy.
Other leading cryptocurrencies also posted gains, with Ethereum, the second biggest cryptocurrency by market capitalization, rising to $3,221 from $2,190 a year ago. Other digital currencies and securities linked to the industry have also risen sharply. Solana’s – SOL token price went up by 11% while that of coinbase – coinbase Global, a major Crypto exchange, went up by 16%.
Trump’s victory was accompanied by an optimistic reaction within the crypto market solely on the basis of better expectations in terms of regulation of the market. Trump has taken a side in crypto and pledged to replace Securities and Exchange Commission chair Gary Gensler, who the crypto industry perceived as an enemy. Such a potential change in leadership has brought some hope that there will be better direction and policies to support the US crypto firms.
After the election results and before the appearance of policy changes, digests focus for indications of sustainability of this shock. Despite the current rally having lit up the crypto space, certain analysts are fearful that the market might soon be due for a correction given that recovery has been fast and coupled with skyrocketing high leverage ratios from the trading frenzy.
