Bitcoin Nears $90,000 as Crypto Market Exceeds Pandemic-Era Peak
(Bloomberg) -- Bitcoin’s chartbusting rally took the digital asset to almost $90,000 for the first time and lifted the overall value of the crypto market above its pandemic-era peak as traders bet on a boom under President-elect Donald Trump.
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The largest digital currency has jumped about 33% since the US election on Nov. 5, hitting an all-time high of $89,968.10 on Tuesday, based on a benchmark of composite prices tracked by Bloomberg. On some exchanges such as Coinbase, and broker platforms like Galaxy Digital’s, the price did briefly exceed $90,000. Smaller tokens such as Dogecoin and shares of crypto-related companies like MicroStrategy Inc. also extended their record-breaking gains.
“Post-election, cryptocurrencies have seen gains as potential pro-investment economic policies and regulatory clarity bolster investor confidence and liquidity,” said Brian Strugats, head of spot trading at the crypto prime broker FalconX. “With institutional adoption accelerating and global markets eyeing crypto for diversification, the influx of capital is likely to grow.”
Trump has vowed friendlier crypto rules and his Republican Party is tightening its grip on Congress, boosting his odds of pushing through his agenda. Trump’s other pledges include setting up a strategic Bitcoin stockpile and fostering domestic mining of the token to make the US the crypto capital of the planet.
His stance is a sharp break from a Securities & Exchange Commission crackdown on the divisive industry under President Joe Biden. The change of tone has energized speculative buying of large and small tokens alike, raising the value of digital assets overall to about $3.1 trillion, CoinGecko data show.
‘Red-Hot’ Play
Bitcoin is in “beast mode,” Chris Weston, head of research at Pepperstone Group, wrote in a note. “The question for traders not already set is whether there is still room to chase this red-hot play or wait for a slight retracement and for some of the heat to come out of the impulsive trend.”
Investors are lining up bets in the options market that Bitcoin will pass $100,000 as soon as the end of the year, according to data from the Deribit exchange. Open interest — or outstanding contracts — for CME Group Inc. futures for Bitcoin and second-ranked Ether scaled records on Monday, a sign of growing engagement by US institutional investors.