Bitcoin rose more than 8% during the day, breaking through $93,000, and Dogecoin soared 16%. Financial talk 2024/11/14 07:22 Financial Business Observer From Beijing After a brief pause, the cryptocurrency rally triggered by Trump's victory in the US presidential election regained momentum on Wednesday during US trading hours.
Bitcoin broke through the important mark of $90,000 and continued to rise thereafter, with a daily increase of 8.6% to $93,300, setting a new all-time high.
The top digital currencies by market value all rose. Dogecoin, which Musk strongly supported, soared by more than 16% in one day. Dogecoin is one of the strongest performing currencies in the cryptocurrency field in recent times. After strongly supporting Trump to win the US presidential election, Trump announced on November 12 local time that Musk would become one of the leaders of Trump's "Department of Government Efficiency" (DOGE) plan.
The department's acronym is clearly a nod to Dogecoin. In terms of cryptocurrency concept stocks, BTC Digital rose by more than 71%, and the two-times long Bitcoin ETF rose by about 6.3%. Among Bitcoin ETFs, BTCW rose by 3.3% and ARKB rose by more than 3.1%.
According to data from derivatives exchange Deribit, bullish option bets are concentrated on Bitcoin reaching $100,000. At the beginning of this week, inflows into U.S. spot Bitcoin ETFs exceeded $1 billion. Wall Street generally believes that Trump's promise to go all in on the cryptocurrency field has pushed the price of Bitcoin to new heights.
Trump has vowed to turn the U.S. into the world's cryptocurrency capital. Bitcoin speculators are betting on a looser regulatory environment and anticipating that authorities may establish a cryptocurrency reserve fund to help boost continued demand. Galaxy Digital CEO Michael Novogratz said people have to sell the long end of the bond market.
Bitcoin price could go to $500,000. Bitcoin should rival gold in ten years. Bitcoin is unlikely to become a reserve asset. The dollar does not need to be backed by something to be an international reserve currency.
Other analysts pointed out that the relatively mild leverage in the cryptocurrency market mitigates the risk of a sharp correction. The market respite is likely to be short-lived, and the tailwind remains strong.
However, there are also doubts in the market. Some industry insiders pointed out that although the possibility of further increases cannot be ruled out, a lot of good news has already been factored into the price of Bitcoin.
In addition, U.S. Treasury yields and the U.S. dollar are both climbing, and relatively high borrowing costs are unfavorable for risky assets such as cryptocurrencies.
