- Bitcoin’s rapid 30% rise pauses as traders gauge the impact of Trump’s crypto-friendly stance.
- BTC hit a record $89,968 post-election but has now cooled slightly, trading around $87,940.
- Trump’s pro-crypto rhetoric boosts market sentiment but larger economic factors loom.
- Dogecoin doubles in value, benefiting from Musk’s role in Trump’s new “D.O.G.E.” department.
Bitcoin’s massive post-election rally has taken a breather after soaring over 30% since Donald Trump’s victory on November 5. Traders are now assessing the potential of a sustained crypto-friendly environment under the new administration.
Despite the brief cooling, Bitcoin remains just shy of the $90,000 mark, trading at around $87,940 as of Wednesday morning in Singapore.
Trump’s Crypto Stance Fuels Optimism, But Big Questions Remain
President-elect Trump’s surprising embrace of cryptocurrency has driven Bitcoin’s recent rally, pushing it to a record high of $89,968. A former skeptic, Trump has since pledged to create favorable regulations for digital assets, establish a Bitcoin stockpile, and transform the U.S. into a global crypto hub. His backing has injected a wave of optimism into the market, lifting the total crypto market value to an all-time high.
https://twitter.com/Mike_Gilbert/status/1856512082885095530
However, the market is waiting to see if Trump will prioritize these crypto initiatives over larger issues like U.S.-China relations and economic policies. “While further gains are possible, a heck of a lot of good news is now priced in,” noted Tony Sycamore, Market Analyst at IG Australia, in a client note.
Dogecoin’s Surge Fueled by Musk’s “D.O.G.E.” Department Role
Dogecoin, the popular meme-based cryptocurrency championed by Elon Musk, has also seen major gains, doubling in value over the past week.
Musk’s rumored appointment to co-lead Trump’s Department of Government Efficiency, or “D.O.G.E.,” spurred further interest in the coin. When Trump officially confirmed the department, which aims to cut federal spending, Dogecoin briefly surged, supported by the enthusiasm of Musk’s fanbase.
Economic Outlook and Federal Reserve Policy in Focus
Amid crypto’s rally, global markets are eyeing upcoming U.S. inflation data, which could influence the Federal Reserve’s future moves on interest rates. With Trump’s policies expected to drive up inflation through trade tariffs and tax cuts, the dollar and Treasury yields both rose on Tuesday, while stocks dipped. Higher borrowing costs could present a challenge for riskier assets like crypto.
Still, analysts believe that the crypto market’s relatively low leverage means a sudden correction is less likely. “A market breather would be welcome, but it is likely to be short. The tailwinds are still strong,” said Noelle Acheson, author of the “Crypto Is Macro Now” newsletter.
Bitcoin briefly topped $90,000 on select platforms like Coinbase, and while its rally has cooled, crypto bulls are hopeful the digital asset’s upward trajectory will continue as the market navigates Trump’s crypto policies and broader economic factors.
