Crypto market hits $3.1 trillion after Trump's victory, Bitcoin reaches record high of $89,000

As traders bet on a boom under US President-elect Donald Trump, Bitcoin's record-breaking gains have propelled the digital currency beyond $89,000, pushing the entire value of the crypto market above its peak during the pandemic.

Since the US election on Nov 5, Bitcoin, the largest token, has surged by nearly 32%, reaching an all-time high of $89,599 early on Nov 12. At 9:25 am Singapore time, the cryptocurrency was valued at $89,165.

To advance his goals, Trump has promised more lenient regulations for cryptocurrency, while his Republican Party strengthens its hold on Congress.

Other commitments include increasing domestic Bitcoin mining and establishing a strategic US Bitcoin stockpile.

This stance sharply contrasts with the Securities & Exchange Commission’s (SEC) crackdown on the controversial sector under President Joe Biden’s administration.

According to CoinGecko data, the shift has prompted speculative buying of both large and small tokens, raising the total value of digital assets to around $3.1 trillion.

Chris Weston, head of research at Pepperstone Group, wrote in a note that Bitcoin is currently in "beast mode."

"The question for traders not already positioned is whether there’s still room to chase this hot play or wait for a slight retracement, allowing some of the heat to come out of the impulsive trend," he added.

Data from the Deribit exchange shows that speculators are betting in the options market that Bitcoin will surpass $100,000 before the year’s end.

Meanwhile, between Oct 31 and Nov 10, software company MicroStrategy Inc.—the largest publicly traded corporate Bitcoin holder outside of the exchange-traded fund (ETF) industry—purchased roughly $2 billion worth of about 27,200 Bitcoin.

Traders are giving little attention to questions such as how soon Trump will implement his policies or whether a strategic Bitcoin stockpile is a feasible plan.

Bitcoin has more than doubled in 2024, driven by strong demand for US-based ETFs and the Federal Reserve’s interest rate cuts.

The token's rise has outpaced the returns of global stocks and gold.

In her latest research note, Fairlead Strategies LLC technical analyst Katie Stockton stated that "it would be natural to see a period of digestion after such a steep run-up" and suggested a "short-term neutral bias."

During the US election campaign, digital asset businesses made substantial donations to candidates perceived as being favorable to their interests. In this context, Trump reversed his earlier stance, supporting an industry he had previously labeled a "hoax."

His support has transformed Bitcoin into one of the so-called “Trump trades,” alongside US stocks and the dollar, both of which have risen in value due to Trump’s focus on domestic economic growth, tax cuts, and protectionist tariffs.