Trump’s victory seems to have triggered a fresh bull run in the cryptocurrency market, with Bitcoin prices seeing a spike to trade at an all-time high of close to $76,000 in the morning trading hours on the Asian market.
With institutional investors said to be positioning for further upside, the flagship digital asset is projected to reach an all-time high of $85,000 in the short term, market experts said.
The addition of $1.1 billion in open interest in Bitcoin (BTC) spot futures on November 6, the US election result day, is cited to support the expected rally in its prices.
The CME (Chicago Mercantile Exchange) BTC futures trading volume also rose to a new all-time high at $13.15 billion on November 6. Prices of Ethereum, another major cryptocurrency, also crossed $2,900 to trade at $2,906 on Friday.
“This surge reflects the optimism surrounding Trump’s pro-crypto stance, which is expected to foster a more favourable regulatory environment for digital assets,” Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, told Arabian Business.
“Investors expect sustained momentum as market participants react to the election results, suggesting that this surge could pave the way for further growth in the crypto sector,” he said.
Ryan Lee, Lead Analyst at Bitget Research, said with the Republican sweep in Congress, there may be favourable developments in the regulatory framework for the crypto market, which would be a long-term positive for the industry.
Hedge funds take cautious approach
Sector experts said following Trump’s win, hedge funds in the Middle East and Asia are adopting a cautious investment approach, particularly given the uncertainty around potential changes in US trade and investment policies.
Many of these funds are selectively investing in energy and tech sectors to minimise risk, while monitoring the broader global market impacts. Additionally, investors are also eyeing the US Federal Reserve’s next move.
“The political landscape in the US has continued to shape the global market outlook,” Agne Linge, head of growth at WeFi, said.
“Hedge funds in the Middle East and Asia, known for their emerging markets, have adopted a cautious approach in their investment push despite Donald Trump’s victory,” Linge said.
The WeFi senior executive said before the US election, the broader regulatory uncertainty in the US forced many pro-crypto investors to lose interest or decouple from the market.
However, there are currently more ways crypto can recouple, owing to the industry’s ties with the US government.
“The first to watch is the expected interest rate cut amid growing demand to boost economic output today. Should the Federal Reserve slash the interest rate by 25 basis points, it can free up enough capital to drive a long-term risk asset boom,” Linge said.
The potential advancement in the cryptocurrency industry can also power the recoupling of most digital currencies, Linge said.
Bitcoin price surge reflects crypto integration
Industry experts said BTC reaching a new milestone in price terms is not only indicative of the digital currency’s resilience, but also highlights the deepening integration of cryptocurrencies into mainstream finance and their recognition as viable assets among institutional and retail investors alike.
“Bitcoin reaching an unprecedented high of $76,000 is a pivotal moment, reflecting the rising trust and demand for decentralised financial assets on a global scale,” Anish Jain, Founder of WadzChain, a leading blockchain player, said.
“At WadzChain, we view this achievement as a testament to the maturing crypto landscape, where blockchain technology is increasingly recognised for its potential to drive transparency, efficiency, and inclusivity in financial systems worldwide,” he said.
Bitget Research’s Lee, however, said that in the medium to long term, Trump’s election could benefit BTC, but his policy direction may also increase inflation in the US, with interest rates potentially staying above 3.5 per cent over the medium to long term.
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