Bitcoin prices reached an all-time high above $77,000 yesterday. (Photo illustration by … [+]
Bitcoin finished up a big week on Friday, November 8, after the digital currency reached a fresh, all-time high following Donald Trump’s decisive victory in the 2024 presidential election.
The world’s most prominent cryptocurrency climbed to as much as $77,312.18 on Friday, according to Coinbase data provided by TradingView.
At this point, the digital asset had risen more than 12% over the course of seven days and was trading at an all-new record, additional Coinbase figures show.
After attaining this latest high, bitcoin retraced slightly, but still retained the vast majority of its recent gains for the rest of the day.
When asked to explain the cryptocurrency’s price movements over the last week, market experts identified a short list of causal factors.
Trump Victory Bullish For Crypto
The first and most salient development they pointed out as driving the digital currency’s recent fluctuations was this year’s U.S. presidential election, which resulted in a clear win for Trump, who will be serving a second term starting in January.
Several analysts emphasized how positive this outcome could be for the crypto/blockchain industry.
“Crypto enthusiasts are generally thrilled to see Trump in office, as he’s been a vocal supporter of Bitcoin and blockchain technology,” Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, stated via email.
The TikTok influencer who goes by Wendy O also weighed in, stressing that Trump’s open support of both Bitcoin and cryptocurrencies in general has been highly bullish for the digital currency markets.
She stated through a direct message sent through X (formerly Twitter) that up until recently, the U.S. Securities and Exchange Commission’s aggressive approach toward many crypto industry participants basically put the sector at a standstill, which in turn prompted some companies in the space to move to jurisdictions with more friendly regulations.
“Now that Trump is elected, faith has been restored in the crypto industry long term as comprehensive regulation, the creation of a Bitcoin Strategic Reserve and the ability for individuals to remain in control of their own keys was promised by Trump,” Wendy O continued.
Sifling also shed some light on how the outcome of the 2024 presidential election will likely affect financial and economic policy, including the crypto regulatory framework, and how these developments will combine to impact assets like stocks and digital currencies like bitcoin.
“While the current regulators have given crypto companies mixed signals, I believe people are under the impression that Trump will put forth a plan to cement America’s place in the world’s crypto ecosystem,” he stated.
“People like Gary Gensler have also waged war on crypto during his term as a regulator and market participants believe he will soon be replaced with someone more favorable to the industry,” said Sifling.
“This, combined with general optimism about de-regulation and less taxes, have created quite the favorable backdrop for risk-on assets like Bitcoin going forward.”
Brett Munster, portfolio manager for Blockforce Capital, also offered his views on how Trump’s victory could result in a significant change in the regulatory framework of the world’s largest economy.
“A Trump presidency offers a potential shift for the crypto industry, moving it from years of regulatory hostility to a much more favorable position,” he wrote via email. “Trump’s campaign took a notably pro-crypto stance, far stronger than Harris’s platform, signaling potential support for digital assets at the federal level.”
“Even if some of Trump’s promises were campaign rhetoric, a neutral or hands-off stance would be a substantial improvement over the prior administration’s more adversarial approach,” Munster noted.
Downballot Victory A A
The portfolio manager shed further light on the situation, claiming that the nation’s government officials are becoming increasingly open to digital currencies.
“Notably, it wasn’t just Trump’s win that hints at a favorable regulatory environment for crypto,” he stated. “In Ohio, Bernie Moreno’s victory over incumbent Sherrod Brown—one of the Senate’s most vocal crypto critics and former Chair of the Senate Banking Committee—represents a major win for the industry.”
“Moreno is a strong proponent of crypto, and with Tim Scott, another outspoken supporter, likely to chair the Banking Committee, the Senate’s influence on crypto policy may take a pro-industry turn. Scott’s public advocacy, underscored by his appearance at Bitcoin 2024, exemplifies a growing pro-crypto sentiment in Congress,” said Munster.
Fed Cuts Rates In November
Several analysts also highlighted the Federal Open Market Committee’s decision to cut rates once again at the November policy meeting.
Following this event, the FOMC announced via a statement that it was lowering the target range for the federal funds rate by 25 basis points, reducing it between 450 and 475 bp.
Independent cryptocurrency analyst Armando Aguilar spoke to this development, stating that it was helping inject the markets with more bullish sentiment.
The fed funds rate has implications for a wide range of borrowing costs, and lowering it can make it easier for consumers and businesses to obtain credit, which can in turn help stimulate more robust economic growth.
Many different risk assets, including stocks and cryptocurrencies, might benefit from stronger economic conditions and the impact they have on the mindset of global investors.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
