Bitcoin touches new high of $90K as rally from US presidential election results continues
During the elections, the cryptocurrency touched an all-time high, rising 7% to $75,060, amid initial exit polls predicting a win for Trump.
Bitcoin on Wednesday evening touched an all-time high of $90,000 after it almost neared the milestone on Tuesday, before paring gains.
The surge in Bitcoin prices seems to be an aftereffect of the US presidential elections that saw Republican candidate Donald Trump being reelected, after defeating Democrat candidate Kamala Harris.
During the elections, the cryptocurrency touched an all-time high, rising 7% to $75,060, amid initial exit polls predicting a win for Trump.
The crypto investor landscape seems to prefer Trump over Harris as the former president is seen to favour minimal regulation for the financial markets, indicating a hands-off approach towards cryptocurrencies.
Investors are hoping another Trump term would ease regulatory oversight in the industry. Notably, Trump had once voiced skepticism about cryptocurrency but has since then repositioned himself as a pro-crypto candidate and even went onto launch World Liberty Financial, a crypto business.
“Bitcoin is now expected to reach $90,000, fuelled in part by the optimism surrounding Donald Trump's re-election. This represents a transformative moment for the crypto and Web3 space. His administration’s support for digital assets could lead to more progressive regulations, fostering an environment conducive to greater institutional and retail investment in the sector,” said Vishal Sacheendran, Head of Regional Markets at Binance, in a statement, as Bitcoin neared the milestone.
Exchanges have seen heightened activity during the bull market sentiment in the sector.
According to CoinMarketCap, community sentiment aligns with this rise, with nearly 76% of them viewing the momentum as bullish, signalling heightened investor confidence.
"ZebPay has also seen a 55% increase in trading volume over the past 24 hours, driven by Bitcoin’s rise and notable activity in other altcoins,” said Raj Karkara, COO at ZebPay.
A statement from CoinSwitch’s Markets Desk said, "Bitcoin surged past the key $90,000 resistance level early in the US trading session, quickly pushing even higher to peak above $93,000 before stabilizing back around $90,000. The rally was driven by intense demand, with the Coinbase Premium Index hitting its highest level since April.”
The statement also said it was a strong day for meme coins.
“It was also a strong day for meme coins, as Pepe and Bonk were both listed on Coinbase, fueling substantial demand and pushing their prices up by 30-50%. Additionally, Pnut, a new memecoin listed on Binance, saw an impressive 250%+ price jump in just one day.
"Overall, Bitcoin dominance reached a season-high, which had a notable impact on altcoins. Many alts struggled, showing either sharp declines or minimal upward movement, as BTC continued to assert its dominance in the market,” it said.
The recent appointments of Elon Musk and Vivek Ramaswamy to head the new Department of Government Efficiency is also expected to positively influence the market as both individuals are known for their pro-crypto stance.
“Both figures (Musk and Ramaswamy) are known for their pro-crypto stance, and their government involvement sends a positive signal to investors, bolstering confidence in the market,” said Sumit Gupta, Co-founder at CoinDCX.
However, Gupta cautioned, “With the current level of ‘extreme greed’ as indicated by the Crypto Fear and Greed Index, we advise all retail investors to do their own research and understand their risk appetite before making any investment decisions."
(The copy was updated with additional comments.)
Edited by Swetha Kannan