Bitcoin Rally Pauses as Market Weighs Trump’s Pro-Crypto Policies

AFRICAN STOCKS AND FINANCENovember 13, 2024 at 1:11 PM UTC

TLDR

Bitcoin's surge paused at $87,900 after hitting an all-time high of $89,968 post Donald Trump's endorsement.
Trump's support led to a 30% increase in Bitcoin value and plans for a US crypto hub.
Dogecoin spiked by 80% as Elon Musk was appointed to co-lead a new government department for efficiency.

Bitcoin’s recent surge took a breather on Wednesday, trading around $87,900 after reaching a record high of $89,968 following President-elect Donald Trump’s support for crypto.

Bitcoin has gained roughly 30% since Trump’s November 5 election victory, as his administration pledges a favorable regulatory framework, a strategic Bitcoin reserve, and aims to establish the US as a crypto hub.

Despite optimism, traders are questioning whether Trump’s administration will prioritize crypto amid pressing issues like China policy and economic recovery. Dogecoin also saw significant gains, up 80% over the past five days, partly driven by Trump’s announcement that Elon Musk would co-lead a new government efficiency department.

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Key Takeaways

While Trump’s pro-crypto stance has driven Bitcoin to new highs, further gains may depend on his administration’s ability to prioritize digital assets amid other policy challenges. Rising Treasury yields and inflation expectations are adding pressure, but crypto markets show resilience, with muted leverage limiting sharp corrections. Bullish sentiment persists, with significant options bets on Bitcoin reaching $100,000 and inflows into US Bitcoin ETFs exceeding $1 billion earlier this week.

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