Bitcoin reached over $80,000 for the first time on 10 November, driven by positive expectations surrounding Trump’s victory in the US presidential election.
Bitcoin, the world’s largest and most famous cryptocurrency, has risen 65.4% from its yearly low of $38,505 reached on 23 January 2024.
Trump has promised to make the US the ‘crypto capital of the planet’.
JPMorgan believes gold and bitcoin will rise under Trump
The increase in the price of bitcoin began back in late October. By the 29th, the cost of the cryptocurrency approached its previous maximum (in March 2024, its price was around $70,007, after which it slightly decreased to $69,800. And so with the US election date approaching, the rate slowly but steadily increased.
Weekends usually see a decrease in trading activity in the cryptocurrency market as many institutional investors and professional traders reduce their participation. Reduced liquidity can cause an increase in volatility, whereby even minor trades can cause large swings in cryptocurrency prices. However, the sharp rise in bitcoin on Saturday and Sunday suggests that activity in the market is being fuelled by retail investors. This indicates a high level of interest in cryptocurrency from small investors rather than large institutional investors in the market.
Following bitcoin, other cryptocurrencies also went up.
Ethereum (ETH) rose to $3,230, Solana $214, BNB $634.
Bitcoin’s current steady growth is due not only to Trump’s victory in the United States presidential election, but also to the Federal Reserve’s decision to cut the interest rate by 25 basis points.
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