Bitcoin breaks historical records in “beast mode”: the cryptocurrency market is going crazy due to Trump’s victory
12 November 12:34
Bitcoin is approaching the $90,000 mark, setting new records for the cryptocurrency market, which has exceeded its peak during the pandemic. The cryptocurrency has risen on optimism related to expectations of President-elect Donald Trump’s policies, Komersant ukrainskyi reports citing Bloomberg.
Thus, since November 5, when the US elections took place, the price of bitcoin has risen by 32%, reaching $89,599, and at the time of morning trading in London it was $88,450. This is another absolute historical record for the price of this cryptocurrency – only yesterday wrote that bitcoin approached the $80,000 mark for the first time.
Market expectations from Trump are that he has promised a more favorable policy towards cryptocurrencies, including the creation of a strategic bitcoin reserve and the promotion of domestic mining to make the United States the “cryptocurrency capital.”
The change in Trump’s rhetoric amid stricter SEC policies under Joe Biden has fueled speculative demand, bringing the total value of digital assets to about $3.1 trillion.
Follow us on Telegram: the main news in a nutshell
Pepperstone Group analyst Chris Weston notes that bitcoin is in “beast mode,” and traders are considering whether it makes sense to continue investing in this “hot asset” or whether it is better to wait until the market cools down. Bets on bitcoin reaching $100,000 by the end of the year are growing in the options market.
At the same time, MicroStrategy Inc. the largest publicly traded corporate holder of bitcoin outside of exchange-traded funds, purchased about 27,200 bitcoins worth approximately $2 billion in late October and early November.
Demand for bitcoin is also supported by interest in specialized U.S. ETFs and interest rate cuts by the Federal Reserve. Katie Stockton, a technical analyst at Fairlead Strategies LLC, noted that after the rapid growth, a “stabilization period” is possible, recommending that traders refrain from making any sudden moves.
Trump’s active support for the cryptocurrency industry has become part of the so-called “Trump deals,” along with the rise of US stocks and the dollar, which is being driven by his economic program and promises to cut taxes and protectionist tariffs.
Follow us on Telegram: the main news in a nutshell
Bitcoin
Bitcoin is the world’s first and most popular cryptocurrency, which appeared in 2009. It was created by a person or a group of people under the pseudonym Satoshi Nakamoto, who remains anonymous. Bitcoin is based on blockchain technology and has no centralized governing body.
Bitcoin is “mined” using a special mining technology, which is a digital analogy to the mining of physical minerals. Similarly to physical minerals, the number of Bitcoins is limited – there are only 21 million tokens in existence. So far, 19 million tokens have been mined, which is more than 90% of all “deposits”. Therefore, mining is becoming more and more difficult and expensive.
Bitcoin, like anything else in the world, can be exchanged for anything else, including traditional currencies. The value of Bitcoin shows the level of trust in it.
Bitcoin is considered to be a secure and well-protected currency with a very high level of confidentiality. In the Bitcoin system, all information about transactions is open, but information about owners is completely anonymous. That is why Bitcoin, like some other cryptocurrencies, is popular among Ukrainian corrupt officials.
