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Bitcoin hits new record high on Trump victory - Crypto News



  • Bitcoin skyrockets and hits fresh record at $76,500
  • Crypto enthusiasts celebrate Trump’s crypto-friendly stance
  • Fed decision eyed; risk of possible pullback
  • However, broader uptrend remains intact

Trump’s return to Oval Office fuels Bitcoin

Crypto traders were among those celebrating Donald Trump’s return to the Oval Office. Bitcoin, the world’s largest cryptocurrency began to gain on the day of the election, and skyrocketed on the first signs that Trump may be the next US president, hitting a fresh record high of around $76,500.

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Trump’s crypto-friendly stance during his campaign raised hopes of softer regulation towards the industry, with his promises including a plan for a state bitcoin reserve. If implemented, such a reserve could mean fewer coins for circulation among investors, and thereby even higher prices. Nonetheless, this also increases the risk for big losses if the government decides to sell a portion of its reserves.

But rally pauses ahead of Fed decision

But bitcoin is pulling back on Thursday, perhaps as traders are securing their profits ahead of the Fed decision. Following Trump’s election, investors are assigning a decent 34% chance for a pause in December, with that chance rising to around 70% in January, even though they remain convinced that a quarter-point rate reduction will be delivered today.

Behind expectations for a slower rate path by the Fed lies the idea that Trump’s protectionist policies and his tax cut promises are seen as inflationary. However, the Fed variable is yet to be reflected in the crypto market and should policymakers sound cautious about future rate cuts today, bitcoin, which is acting as a risky asset, could correct even lower.

Having said that though, Fed Chair Powell may decide to keep his cards close to his chest for now and wait for clearer signals on what a Trump presidency could mean for the US economy and inflation. Something like that could disappoint those expecting a pause around the turn of the year, and thereby allow further advances in bitcoin.

ETF inflows point to healthy uptrend

Despite bitcoin gaining on the day of the election, that day was a net outflow day for ETFs, implying that bitcoin was driven by retail speculation. However, on November 6, ETFs flows turned positive, which suggests that institutional participants are also celebrating Trump’s return to the White House.

Thereby, should Trump stick to his pro-crypto promises, bitcoin could extend its uptrend and conquer uncharted territory again. From a technical standpoint, bitcoin emerged above the prior all-time peak of $73,803, reached on March 14, to hit a new record at around $76,500.

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Although the popular crypto is pulling back now, the broader trend remains positive and even if the retreat extends, the bulls may find the token attractive near the $70,200 support zone. A rebound could encourage advances towards the round number of $80,000. For the near-term picture to turn bearish, the bears may need to push the action below the previously crowded and reversion zone of $61,600.

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