The cryptocurrency community has greeted the news of Donald Trump’s victory in the U.S. presidential race with optimism. Amid the contest between Democrats and Republicans, Bitcoin has reached a new all-time high of $75,400.
New Incentives
Trump’s arrival, positioning himself as a proponent of digital assets, is associated with new incentives and opportunities for the crypto market’s development. His promises to review the actions of the SEC could ease regulatory pressure on the industry and attract institutional investors, notes Blum CEO Gleb Kostarev.
“If the Trump administration fulfills its promises, it could lead to an increased capital inflow into crypto assets and strengthen their positions in the global economy. With greater regulatory clarity and support from major market players, cryptocurrencies could begin more active integration into traditional financial systems,” the expert stated.
Kostarev emphasized that, besides growth signals, political uncertainty and potential changes in the regulatory environment could cause market volatility. He advised investors to consider potential risks.
Beyond Elections
In addition to the U.S. presidential elections, Bitcoin’s rate is currently influenced by the anticipation of further key rate cuts, according to Bitget Research’s chief analyst Ryan Lee. The next meeting of the FOMC is scheduled for Thursday, November 7.
According to the FedWatch survey by CME Group, 97.6% of investors expect a key rate cut of 25 basis points — to 4.5–4.75%.
“A second key rate cut indicates that the American regulator sees a confident trend towards reducing inflation in the U.S. economy. This will boost risk appetite in the stock and cryptocurrency markets and support the growth of risky assets such as stocks and cryptocurrencies,” Lee believes.
He added that the fear and greed index has not yet shown a sharp surge and remains in the neutral zone — around 54 points.
Where Will Bitcoin Head?
In the coming day, the crypto market expects significant volatility, believes Tehnobit CEO Alexander Peresichan.
“We can expect several attempts by Bitcoin to break resistance levels around $76,500 and possibly $78,000. However, after a period of growth, traders will likely start selling the asset en masse to lock in profits, leading to a correction in its value to $72,000-70,000,” the expert predicts.
Fear in the crypto market dissipated at the earliest stages of the voting results’ publication, and substantial Bitcoin purchases began on the spot market, stated trader Vladimir Cohen. The key, he said, was the vote advantage in seven swing states that decide the election outcome, and the lead in Florida.
“Traders, as usual, went ahead, started trading on expectations, and we saw a breakthrough of the all-time high and the formation of a local peak at $75,500 ($76,170 on CME). Growth has not yet stopped, but I do not expect a moonshot,” the expert shared.
Cohen explained his forecast by noting that until Trump’s inauguration on January 20, 2025, the current president Joe Biden, the Democratic administration, and Gary Gensler as SEC chairman remain in charge. All lawsuits against various cryptocurrency projects are still in effect, and Democratic repression on the industry may continue.
According to the trader, greed and euphoria are still pushing the market upwards, but this will end after the Fed meeting on November 7. The rate will likely be cut by 0.25%, yet the Fed has not departed from tight monetary policy — its balance sheet is shrinking, and the long-awaited liquidity influx into the system is not occurring, he noted.
“I expect a slight update of the all-time high to levels of $76,000-78,000 today [November 6], although most analysts consider $80,000 as the near-term target,” Cohen added.
Whales Accumulate Digital Gold
According to analysts at Lookonchain, in the current situation, large holders of the first cryptocurrency are accumulating coins in their wallets. Within an hour, 11 new wallets withdrew 1,807 BTC ($132 million at the time of the transaction) from the Binance exchange.
Whales are accumulating $BTC!
11 fresh wallets withdrew 1,807 $BTC($132M) from #Binance in the past hour.
Address:
bc1qp8ahkl9g28grz4f44ljs2ukjccx6q5yxez7nt4
bc1q76yr34th8ngnxj0pjs9d9vtxrtlyu07y3lsspj
bc1q2vw84cghpyg463g8w4uz734uxl7wstvsemgcec… pic.twitter.com/ZpP2qhXiHT— Lookonchain (@lookonchain) November 6, 2024
Another whale went long on Bitcoin through recursive borrowing. They borrowed $27 million from Aave to purchase 366.31 WBTC at an average price of $73,708 over two hours.
A whale is long $BTC again via recursive borrowing!
The whale borrowed $27M from #Aave to buy 366.31 $WBTC at an average price of $73,708 in the past 2 hours.
Address:
0x488b99c4A94BB0027791E8e0eEB421187EC9a487 pic.twitter.com/6eQEE6I3Y3— Lookonchain (@lookonchain) November 6, 2024
Over the past day, the volume of liquidations on Bitcoin short positions exceeded $217 million, according to CoinGlass.
At the time of writing, the first cryptocurrency is trading at $74,392, according to CoinGecko.
Back in mid-October, the rising odds of Trump’s election victory brought inflows back to crypto funds.
Earlier, Tyr Capital and Bitget Research warned of increased Bitcoin price fluctuations following the announcement of the presidential race results. A similar opinion was presented by Standard Chartered.