Bitcoin crosses $82,000 as Trump's return fuels optimism for crypto

Trump's promise to establish the US as a global leader in digital assets could signal a shift toward more crypto-friendly policies.

In Short

• Bitcoin hits record $82,300 on renewed interest
• Market cap surpasses $1.16 trillion, in top 10 assets
• Trump re-election may lead to crypto-friendly policies

Bitcoin crossed the $82,000 threshold for the first time on Monday, November 11, driven by renewed investor interest following Donald Trump’s re-election as US president. The president-elect championed cryptocurrency during his campaign and is expected to introduce favourable crypto regulations.

• New peak: The largest cryptocurrency, Bitcoin, climbed 6.1 per cent on Sunday, reaching an all-time high of $82,300 on Monday at 3:45 pm IST.
• Market cap milestone: With a market cap of $1.16 trillion, Bitcoin now ranks among the top 10 global financial assets, surpassing major corporations like Visa.

WHY IT MATTERS

Trump’s promise to establish the US as a global leader in digital assets could signal a shift toward more crypto-friendly policies. This potential shift could open new doors for institutional investment, stimulate innovation, and reshape how cryptocurrencies are perceived and regulated in the US.

According to CoinDesk, a significant amount of spot trading volume is coming from Coinbase, a leading crypto exchange favoured by US investors and institutions. This uptick coincides with a spike in the Coinbase Premium Index, which measures the price gap between Coinbase and other exchanges. A higher premium suggests strong buying interest from US-based investors, potentially signalling institutional demand behind Bitcoin’s recent rally.

BY THE NUMBER

Bitcoin’s value has surged 94 per cent in 2024, boosted by a combination of US exchange-traded fund demand and recent Federal Reserve rate cuts. Last week alone, Bitcoin gained 17 per cent, marking its second-best week this year, according to CoinDesk.

Bitcoin, the world’s first “decentralised digital currency,” was launched in 2009 by an unknown person or group under the pseudonym Satoshi Nakamoto. Since then, its value has fluctuated dramatically. Bitcoin peaked at around $1,000 in late 2013, then dropped to less than half before rebounding in 2016. Now, in November 2024, it has hit an all-time high.

The dollar also rose 0.4 per cent against a basket of currencies on Monday, reaching levels not seen since July and surpassing its post-election high last week. This surge reflects investor optimism in the dollar alongside Bitcoin, hinting at a wider response to the election outcome in financial markets.