Bitcoin nears $80000 in weekend surge after Donald Trump's return ...
Bitcoin is approaching the $80,000 mark for the first time, driven by President-elect Donald Trump’s support for digital assets and the potential influence of pro-crypto lawmakers in Congress.
The cryptocurrency surged past $79,000 for the first time ever in a surprising weekend rally, which triggered the liquidation of $280 million in short positions across the crypto market.
Bitcoin jumped as much as 4.3 percent, reaching a record high of $79,771 on November 10, and remained just under $79,000 as of 2:05 pm in Singapore. Other cryptocurrencies, including Cardano and the meme favourite Dogecoin, also saw strong gains.
BTC's 4 percent rise extended its seven-day gains to over 16 percent, a rally fuelled by two major events: the election of Republican Donald Trump as the next US president and the Federal Reserve’s decision to cut interest rates by 25 basis points. Both are seen as favourable developments for the crypto market.
Weekend surges are often seen as bullish in crypto markets because trading volumes tend to dip when institutional investors and professional traders are less active. This lower liquidity can lead to sharper price movements, where even smaller trades can have a significant impact.
The sizable weekend jump could indicate that retail investors are driving the price increase, a positive signal that suggests broad-based interest and participation from smaller investors rather than just institutional players.
Throughout his campaign, Donald Trump pledged to position the US as a leader in the digital asset space. His proposed policies include accumulating Bitcoin reserves and appointing regulators to oversee the industry.
So far in 2024, Bitcoin has risen by around 90 percent, fuelled by strong demand for US exchange-traded funds (ETFs) and the Fed’s interest rate cuts, outpacing traditional investments like stocks and gold.
Trump’s pro-crypto stance contrasts sharply with that of President Joe Biden, whose administration has taken a more cautious approach toward digital assets. Biden's Securities and Exchange Commission (SEC), led by Gary Gensler, has been vocal about potential fraud and misconduct within the crypto industry.
In 2022, the SEC ramped up its oversight of digital assets following the collapse of Sam Bankman-Fried's FTX exchange.
(With inputs from agencies)
