On Wednesday (November 13), after hitting a record high of $89,851, Bitcoin fell back to $87,600 and Dogecoin once soared above $0.4. Donald Trump officially fulfilled his pre-election promise and announced that billionaire Elon Musk and entrepreneur Vivek Ramaswamy will lead a new Department of Government Efficiency (D.O.G.E.).
President-elect Trump announced on Tuesday that Musk and Ramaswamy will lead a new Ministry of Government Efficiency whose mission will be to "dismantle the government bureaucracy, cut redundant regulations, slash wasteful spending and reorganize federal agencies," Bloomberg reported.
During his campaign, Trump said the commission would develop a plan to eliminate "fraud and improper payments" and conduct a "comprehensive financial and performance audit" of the federal government. On Tuesday, Trump said the commission would work with the White House Office of Management and Budget and said their work would be completed no later than July 4, 2026 - the 250th anniversary of the founding of the United States.
Musk predicted at Trump's rally at Madison Square Garden last month that he could cut the U.S. federal budget by at least $2 trillion, but that would be more than Congress spends each year on government operations, including defense. That would likely require deep cuts to popular programs like Social Security, Medicare, Medicaid and veterans benefits.
The U.S. government spent more than $6.75 trillion last fiscal year, with more than $5.3 trillion coming from Social Security, Medicare, defense and veterans benefits — all spending fraught with political risk and notoriously difficult to convince Congress to cut — plus interest on the debt.
"This will be a shock to the entire system, for everyone involved in government waste," Musk said in a statement provided by the Trump transition team on Tuesday.
He also reposted on Twitter what Kentucky Rep. Thomas Massie wrote: "The new Congress begins on January 3rd, but President Trump does not take office until January 20th. With majorities in the House and Senate, we should have at least a dozen bills aimed at reducing excessive government power sitting on his desk awaiting his signature on his first day in office."
Musk reposted the post and emphasized: "Long live Government Efficiency."
After the news came out, the price of Dogecoin rose sharply.
Trump's victory drives $460 billion in inflows, Bitcoin sets record for "magic candle"
Bitcoin extended its rally on Tuesday, surpassing $89,500 as U.S. institutional investors stepped up their buying. In addition to the optimism brought about by Trump's victory, the recent dovish shift in the U.S. macroeconomic landscape also supported the rise in Bitcoin prices.
As inflation cools, the Federal Reserve and the Bank of England have each cut interest rates by 25 basis points, creating favorable conditions for asset appreciation.
The daily chart of Bitcoin shows that the price of Bitcoin has risen 34% in the past week, from $67,440 to a record high on Tuesday. Previously, Bitcoin recorded its largest single-day gain, with its price rising by more than $10,000 on Monday.
In terms of market value, driven by Trump's victory and favorable macroeconomic factors, Bitcoin's valuation increased by US$460 billion in a week.
In October, MicroStrategy, the largest listed Bitcoin whale, announced plans to acquire $42 billion worth of Bitcoin within three years. CEO Michael Saylor confirmed on November 11 that he had purchased 27,000 Bitcoins for the first time, worth $2.03 billion. On that day alone, this huge purchase pushed the price of Bitcoin from $77,000 to $89,000.
With this purchase, MicroStrategy's Bitcoin holdings have reached $25.15 billion, and its reserves have generated $13.1 billion in unrealized profits. Following MicroStrategy's latest acquisition of 27,000 Bitcoins worth $2 billion, its stock price soared to an all-time high of $357 per share, reflecting investors' confidence in its Bitcoin-focused strategy.
Bitcoin Technical Analysis
FXEmpire analyst Muhammad Umair said that the double bottom formation in 2019 and 2020 and the breakthrough of $14,000 triggered a strong surge in the price of Bitcoin. The peak in 2021 then consolidated until 2023 and formed a cup pattern.
Moreover, the consolidation at the edge of the cup formed a descending broadening wedge pattern. These bullish patterns led Bitcoin to break above $75,000, suggesting that Bitcoin could move further higher from these levels. The initial resistance for this surge is $100,000, which could be breached after a minor correction.
The Bitcoin price prediction can be seen in the weekly chart below. It shows that the price is approaching the $100,000 resistance level after breaking out of the cup pattern and the falling extending wedge pattern. Currently, the price is trading within an ascending channel and a breakout of $100,000 is expected to initiate a strong sprint towards $250,000 next year. The trendline of the ascending channel identifies a target of $250,000.
The monthly chart of Bitcoin dominance shows the formation of the Adam and Eve patterns. The Adam portion is a sharp drop in dominance that occurred in 2017 when the altcoin market surged during the crypto bull run. This shift significantly reduced Bitcoin's dominance as investor interest spread to various alternative currencies. The Eve portion, on the other hand, is a rounded, gradual bottom that formed from 2021 to 2022. This formation represents a stable phase of declining dominance.
Since Bitcoin’s dominance has been rising steadily since Eve’s bottom, this indicates a shift in market sentiment towards Bitcoin. This shift is due to increased regulatory scrutiny of certain altcoins and increased volatility in the altcoin space.
Additionally, the growing appeal of Bitcoin as a stable digital asset has also contributed to this change. The current trend shows that Bitcoin is regaining market share relative to other cryptocurrencies. This shift may be due to the perception that Bitcoin is a "safe haven" in the cryptocurrency market. This bullish pattern means that Bitcoin's dominance may continue to rise, possibly targeting previous resistance levels around 70%.
