- Bitcoin reaches an all-time high of $81,000, fueled by market confidence.
- Ether and Dogecoin also see significant rises in prices
Bitcoin has surpassed $81,000, hitting a new market milestone and increasing its market capitalization to $1.5 trillion. This price increase comes in the wake of Donald Trump’s election victory, as he continues to support a crypto-friendly agenda. Trump’s campaign promises included establishing a Bitcoin reserve and picking pro-crypto regulators, which contributed to the market’s optimistic sentiment.
Since Trump won the presidency on November 6, Bitcoin has risen by 15.65%, its greatest weekly performance since February. The rise follows a remarkable 81% increase in 2024, driven by strong demand for Bitcoin ETFs in the United States and drops in interest rates. Notably, institutional investments have played a critical role, with BlackRock reporting its largest-ever Bitcoin inflow of $1.12 billion, adding to the bullish forecasting for Bitcoin.
Market Sentiment Shifts Following Trump’s Victory.
The market’s faith that Trump will push for more crypto-friendly regulations during his second term is a major driver of the recent price spike. Trump campaigned on a platform that supported digital currencies, promising to make America the world’s crypto capital. This optimism in pro-crypto legislation, particularly from the Securities and Exchange Commission, has caused a significant increase in market sentiment.
The Bitcoin rise has been supported by increasing activity in the ETF industry, particularly from large companies such as BlackRock. This institutional infusion has increased crypto confidence and encouraged expectations of a long-term bull run. Analysts estimate Bitcoin might reach $100,000 in the coming weeks if it follows its upward trend.
Meanwhile, a spike in Bitcoin withdrawals from exchanges such as Binance suggests that significant holders are transferring their funds to safe wallets. In the last hour, five wallets withdrew 745.5 BTC worth $59 million, following a trend begun after Trump’s election. Since then, a total of 5,364 BTC, valued at $425 million, have been withdrawn, indicating a shift in market behavior as investors prepare for potential future growth. At the time of writing, BTC was trading at $81,459, up 2.74% in the last 24 hours.
Along with Bitcoin, other major cryptocurrencies had strong rises. Ether, the second-largest cryptocurrency by market capitalization, reached $3,200 for the first time in months, boosted by the overall market gain. Meanwhile, Dogecoin achieved a three-year high, adding to the excitement surrounding cryptocurrency assets.
As Bitcoin reaches new highs, investors and crypto enthusiasts are keeping a careful eye on prospective regulatory changes that might define the future of the digital currency ecosystem.
