The price of Bitcoin has broken historical highs, reaching an astonishing $97,858, marking another significant milestone for this leading global cryptocurrency, with its market capitalization approaching $2 trillion. Particularly in the two weeks following Donald Trump's victory in the U.S. presidential election, the rebound in Bitcoin's price was especially strong, and many analysts referred to it as the 'Trump Trade,' believing that Trump's election had a positive impact on Bitcoin's price.
The 'Trump Trade' continues its strong momentum
The price of Bitcoin has been steadily rising since Trump's election, especially as the news of his victory became clearer. Bitcoin quickly broke through the historical high of $73,737 in March and continues to set new records. Since Trump's election, the price of Bitcoin has risen by more than 35%, showing a significant market rebound.
There are multiple factors behind this wave of increase, particularly the support of cryptocurrencies by the government and the U.S. Federal Reserve's interest rate cuts, which have made investors more optimistic and boosted market confidence. This trend is referred to as the 'Trump Trade,' which not only facilitated the rise of Bitcoin but also pushed up the prices of various assets including stocks and bonds.
Why is the market so optimistic?
Bitcoin's strong performance is not solely related to Trump's victory. The Trump administration's team is considering appointing blockchain expert Teresa Giudice as the next chair of the Securities and Exchange Commission (SEC). Her appointment could have a positive impact on the cryptocurrency industry. Additionally, Fox Business reporter Eleanor Terrett also reported that well-known cryptocurrency supporter Brian Brooks is also on the potential candidate list and could even be the preferred choice for the position.
Meanwhile, there are reports that Trump's media company—Trump Media & Technology Group—is in acquisition talks with the well-known cryptocurrency exchange Bakkt. This news has further sparked market interest in Bitcoin and increased investor confidence in its future.
Active entry of large institutions
The soaring price of Bitcoin has also been driven by large institutional investors. Recently, global asset management giant BlackRock launched Bitcoin options trading through its iShares Bitcoin Trust (IBIT). Coinpedia reported that IBIT's first-day trading volume was astonishing, reaching $1.9 billion, setting a new record in the history of Bitcoin ETFs.
With the dual push of Trump's victory and institutional investors gradually increasing their stakes, Bitcoin's future looks brighter, and investors are confident in its long-term development.
