Trump’s Win Fuels Bitcoin Rally to Fresh Record High

A mock-up of a physical Bitcoin on Jan. 12, 2022. John Fredricks/The Epoch Times

Cryptocurrency euphoria is showing no signs of fading as President-elect Donald Trump’s victory lifted bitcoin prices to a fresh record high.

Bitcoin surged by nearly 11 percent on Nov. 11, to above $85,000 on the Chicago Mercantile Exchange on Nov. 11.

The premier cryptocurrency has surged by 27 percent since Trump secured a second term last week, boosting the coin’s year-to-date rally to 100 percent.

Ethereum, the second-largest cryptocurrency, has rocketed 37 percent since Election Day.

Other cryptocurrencies, considered a part of the so-called Trump trade, have been swept up in the post-election crypto-mania. Solana and Dogecoin—the fourth- and sixth-largest cryptos—advanced by 37 percent and 106 percent, respectively.

Ebullience has been observed in other crypto assets.

Shares, for example, in Coinbase, the largest U.S. cryptocurrency exchange, have surged by 80 percent over the past week. Robinhood, an app-based trading platform that supports the buying and selling of dozens of digital tokens, has risen to its highest level in three years.

BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) has ballooned, surpassing its gold counterpart.

The bitcoin ETF, which was launched in January, surged by 12 percent to kick off the trading week, touching an all-time high of $49. As of Nov. 8, the fund’s net assets stood at $34.3 billion.

By comparison, the 20-year-old iShares Gold Trust ETF slumped by about 2 percent, to below $50. Its net assets were about $33 billion.

In total, the market cap of all spot U.S.-listed bitcoin ETFs is more than $80 billion.

“For now, optimism prevails,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said in a note emailed to The Epoch Times.

“During the weekend, the Trump optimism continued to show in bitcoin prices. The price of a coin spiked past the $81,000 level, and the next natural target on the grill is the $100,000 psychological level.”

Since the president-elect’s victory, bitcoin and the broader crypto industry have enjoyed a fresh boost, as he has presented various pro-crypto policies throughout the election campaign.

Trump has pledged to establish a national strategic reserve comprising bitcoin and turn the United States into the “crypto capital of the planet.”

“For too long, our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin,” Trump said at the industry’s biggest bitcoin conference this past summer in a prepared speech. “If I am elected, it will be the policy of my administration, the United States of America, to keep 100 percent of all the bitcoin the U.S. government currently holds or acquires into the future.”

On the regulatory side, Trump said we would create a “bitcoin and crypto presidential advisory council.” In addition, he said he would fire Securities and Exchange Commission (SEC) chief Gary Gensler, a staunch critic of the crypto industry who has taken an aggressive stance on the sector.

President-elect Donald Trump is joined by his wife, Melania Trump, and his son Barron Trump as he speaks to supporters after winning the presidential election, in West Palm Beach, Fla., on Nov. 6, 2024. John Fredricks/The Epoch Times

Noelle Acheson, a crypto analyst, says the crypto industry received a “structural boost” as a potential Republican trifecta “makes the passage of crypto bills much more likely.”

“The first out of the gate will probably be a stablecoin bill—that’s the low-hanging fruit for now, and we will see issuance frameworks, insurance requirements and the authorization of banks to enter the field,” Acheson wrote in a newsletter.

Fed Also In Focus

In addition to Trump’s election win, other near-term fundamentals, including monetary policy, have supported the week-long crypto rally.

Last week, the Federal Reserve policy-making officials cut interest rates for the second straight meeting, implementing a quarter-point reduction to the benchmark federal funds rate.

According to the CME FedWatch Tool, the futures market is anticipating another 25 basis-point interest-rate cut at the December policy meeting of the Federal Open Market Committee.

Lower interest rates, by pushing down Treasury yields, bolster the appeal of riskier assets such as stocks and bitcoin.

Despite signals of further rate cuts ahead, the U.S. bond market has surged for the past six weeks, with yields on medium- and long-term debt securities soaring.

Since the Fed ignited its easing cycle in September, the benchmark 10-year yield has climbed by nearly 70 basis points, to 4.3 percent. The 20- and 30-year yields have also advanced to 4.58 percent and 4.47 percent, respectively.

Market analysts have attributed the upward movement to various reasons, including concerns regarding the government’s fiscal health, optimism over economic conditions, resetting Fed policy expectations, and renewed inflation fears from tariffs.

“Bond markets seem to be exercising caution here, tempering equity market enthusiasm. The good news is that this presents more attractive starting yields for bond investors who are looking to deploy excess cash,” Jeff Buchbinder, chief equity strategist for LPL Financial, told The Epoch Times in an emailed note.