Bitcoin has reached an all-time high, trading above $90,000 for the first time following President-elect Donald Trump’s pro-crypto stance. Since Trump’s election win on November 5, Bitcoin has surged over 30%, with a record high of $91,085 reached on Wednesday morning in New York. Trump has pledged to support crypto with favorable regulations, establish a strategic Bitcoin stockpile, and position the US as a global crypto hub, all of which have fueled excitement in the digital asset space.
Market Reactions and Analyst Perspectives
Analysts are cautious but optimistic, noting that Trump’s crypto-friendly stance has already been priced in heavily. However, challenges remain, particularly regarding legislative focus on larger economic and foreign policy matters that might delay crypto-related legislation. Nonetheless, IG Australia analyst Tony Sycamore commented that while further gains are possible, much of the “good news” has already been priced into Bitcoin’s current value.
Dogecoin and Elon Musk’s Influence
Dogecoin has also been a strong performer, surging 80% in the past week. The meme token received a boost after Musk, now tapped by Trump to co-head the newly formed Department of Government Efficiency, expressed support. Dogecoin briefly surged in reaction before stabilizing alongside Bitcoin.
Broader Market Factors
US inflation data and expectations for interest-rate cuts from the Federal Reserve are contributing to market dynamics. Treasury yields and the dollar are on the rise, as investors anticipate potential inflationary impacts from Trump’s proposed trade tariffs and tax cuts, affecting stock and crypto valuations. Market expert Noelle Acheson highlighted that the relatively low leverage in the crypto market might mitigate the risk of a sharp correction.
With Bitcoin already nearing the symbolic $100,000 mark and significant inflows into Bitcoin ETFs, the market is eagerly watching for more bullish movements.
