Bitcoin, the world’s most capitalized cryptocurrency on Sunday broke through the $81,000 resistance level to set a new all-time record.
The upsurge was bolstered by President-elect Donald Trump’s position on digital assets and the prospect of a congress featuring pro-crypto lawmakers.
Bitcoin gained 6.1% on Sunday to extend its gains to a record $81,891 per coin on Monday before pulling back to $81,550 at 5:10 a.m. Nigerian time.
Dogecoin and other meme coins also appreciated as the sentiment of the cryptocurrency space remained bullish.
“With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that’s what we’re seeing now,” said Le Shi, Hong Kong managing director at market-making firm Auros.
In 2024, Bitcoin gained 94%, largely on the back of the US exchange-traded funds and interest-rate cuts by the Federal Reserve.
The rise in Bitcoin exceeds the returns from investments such as stocks and gold.
Data showed that inflows into the cryptocurrency space surged across the board since the Tuesday election.
According to Bloomberg data, BlackRock Inc.’s $35 billion iShares Bitcoin Trust recorded a daily net inflow of almost $1.4 billion on Thursday while a day earlier, the iShares ETF’s trading volume jumped to an all-time peak.
“We believe a significant portion of the institutional market de-risked in the lead-up to the election and is now re-entering post Trump’s win, creating material buying pressure — this is likely to be ongoing for some time yet,” said Richard Galvin, founder of crypto-focused investment firm DACM.
Leave a Comment