Bitcoin Takes Off: A New Era for Crypto Post-Trump
Ah, Bitcoin—the wild child of finance that just can’t seem to sit still. Soaring to a staggering all-time high above $87,000 on Monday, it’s as if the cryptocurrency had a double shot of espresso while watching an episode of The Apprentice. Yes, folks, with Trump back in the White House, the crypto world is buzzing faster than a caffeinated squirrel. Who knew the path to financial liberation involved a non-stop Trump rally?
The so-called ‘digital gold’ has more than doubled since its yearly low of $38,505. Just imagine buying a coffee with that—but you’d have to wait until it’s nearly $90,000 to afford maybe half a dozen. By the way, if you’re following the price tag, Bitcoin was dancing around $87,079—almost 9% above its late Sunday price, setting a record at nearly $87,460! That’s Bitcoin; it leaves you both euphoric and slightly nauseated. Like roller coasters, but with fewer safety precautions.
But it’s not just Bitcoin enjoying the limelight; the whole cryptocurrency film cast is making a comeback. U.S.-listed cryptocurrency stocks have joined the party, with Coinbase Global booming by 22% and iShares Bitcoin Trust rising by a cheeky 13%. It’s like every crypto stock in the theatre suddenly decided to throw popcorn up in the air while shouting, “We’re rich!”
If you thought you could cash in on the ‘crypto capital of the planet’ promise by Trump, don’t forget about the miners! Those digital diggers at Riot Platforms jumped 19%, and MicroStrategy, Bitcoin’s corporate hype man, shot up nearly 24%. Who needs a financial advisor when you can just have Trump whisper sweet nothings into your wallet?
Now, let’s talk consequences. Short sellers, the folks betting against cryptocurrencies and hoping to profit from a crash, have been nursing serious wounds since November 6. Combined losses from Coinbase, Riot Platforms, and others soared to around $1.2 billion. That’s billion with a ‘B’, which, fun fact, is also how many tears these shorts are probably shedding right now. My advice? Maybe switch to betting on three-legged frogs; at least they have a fighting chance!
Interestingly, it seems crypto investors are giddy over the idea of less regulatory scrutiny. With Securities and Exchange Commission Chairman Gary Gensler’s days apparently numbered, Trump has promised to surround himself with crypto-friendly characters, like that one friend who always convinces you to take another shot at the bar. Jeff Dorman, chief investment officer of asset manager Arca, slid in with a comment about a ‘moment of rebirth for the crypto industry.’ Sounds a bit biblical, doesn’t it? Maybe we’ll even see cryptocurrencies parting the Red Sea next.
Now onto the main event: the virtual currency smackdown! Ether has also been strutting its stuff, hitting a more than three-month high above $3,350 before trading at $3,318, while Dogecoin—yes, the meme made coin—has also clambered back to a three-year high. Are we living in the peak of absurdity? Certainly! A digital asset that started as a meme is now moonwalking confidently into our wallets. If only the actual dogecoin could join in and strut its stuff!
The cryptocurrency industry splashed out over $119 million to support pro-crypto congressional candidates. So what’s the takeaway? If you’re not spending money to make money, are you really doing it right? Perhaps I’ve been investing all wrong—I should just shower money on pro-crypto politicians and hope they deliver me a profit? Sounds easy!
“If you think regular finance is dramatic, wait until you throw politics into the mix!”
So, hold onto your digital wallets, folks! With all this energy in the air, the only things standing between you and financial freedom may be a good Wi-Fi connection and a little less scrutiny on your lively Bitcoin transactions. Because when it comes to cryptocurrency, the only certainty is uncertainty. And we wouldn’t have it any other way!
Bitcoin soared to an all-time high above $87,000 on Monday on expectations that cryptocurrencies will boom in a less strict regulatory environment following the election of Donald Trump as US president and like-minded candidates for Congress.
The world’s largest and best-known cryptocurrency has more than doubled from its yearly low of $38,505 and was trading at $87,079, almost 9% above its late Sunday price, after hitting an all-time high of $87,460. .
U.S.-listed cryptocurrency stocks also rose, with crypto exchange Coinbase Global soaring 22% and iShares Bitcoin Trust soaring 13%.
Cryptocurrency miner Riot Platforms rose 19%, while MicroStrategy, one of bitcoin’s largest corporate backers, gained nearly 24%.
Trump embraced digital assets during his campaign, promising to turn the United States into the “crypto capital of the planet” and amass a national reserve of bitcoins.
“The outcome of the 2024 US election is a moment of rebirth for the crypto industry,” wrote Jeff Dorman, chief investment officer and co-founder of asset manager Arca, in a research note.
“Events in crypto with this level of importance are rare. “When they happen, they immediately broaden the world’s collective perspective on the potential of the crypto movement and where this technology will take the world in the future,” he added.
Short sellers of cryptocurrencies and blockchain-related securities have suffered heavy losses since November 6, after bitcoin hit all-time highs.
Combined losses from short selling at Coinbase, cryptocurrency miners Riot Platforms and MARA Holdings, as well as blockchain farm operator Bitfarms were around $1.2 billion, as of the close on Nov. 8.
Crypto investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chairman Gary Gensler, whom Trump has said he will replace.
Read: Bitcoin rises and causes billions in losses to those who bet short after Trump’s victory
The cryptocurrency industry spent more than $119 million supporting pro-crypto congressional candidates, many of whom won their elections.
Cryptocurrency gains have been broad.
Ether topped out at a more than three-month high above $3,350 and was then trading at $3,318. Dogecoin, an alternative cryptocurrency that began as a satirical critique of the 2013 cryptocurrency frenzy, was at a three-year high.
With information from Reuters
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**Interview with Jeff Dorman, Chief Investment Officer of Arca**
**Editor:** Thank you for joining us, Jeff! With Bitcoin reaching a staggering all-time high above $87,000 and the excitement surrounding the crypto market, how do you see the current political landscape influencing this boom?
**Jeff Dorman:** Thank you for having me! The return of Trump to the White House has certainly energized the crypto space, particularly with his promises to create a more favorable regulatory environment. The excitement is palpable, as many investors see this as a moment of rebirth for the industry. Less regulation could lead to more adoption and innovation, which traditionally drives prices up.
**Editor:** Speaking of prices, Bitcoin has doubled since its yearly low. What do you think is driving this rapid increase?
**Jeff Dorman:** Several factors are at play. First, the narrative around Bitcoin being ‘digital gold’ is stronger than ever. Many see it as a hedge against inflation and economic uncertainty. Also, the recent gains in crypto stocks, like Coinbase and MicroStrategy, reflect broader market confidence. Plus, let’s not forget the speculative nature of cryptocurrencies; when there’s momentum, it tends to attract even more buying.
**Editor:** How do you respond to concerns about the rising losses among short sellers in this volatile market?
**Jeff Dorman:** Short sellers have definitely been feeling the heat, especially since the market’s resurgence this month. In a market as unpredictable as crypto, getting caught on the wrong side of a trade can lead to substantial losses. It underscores the importance of risk management in this space—it’s essential to have a strategy that acknowledges the volatility.
**Editor:** You mentioned that the crypto industry invested over $119 million in pro-crypto candidates. What does that suggest about the future of cryptocurrency in the U.S.?
**Jeff Dorman:** It shows that the crypto industry is serious about ensuring a friendly regulatory framework moving forward. By backing candidates that support digital assets, they’re not just investing in potential profits but also in the very future of their sector. It’s a proactive approach to shape the legislative environment in a way that could benefit their interests significantly in the long run.
**Editor:** With all this excitement in the air, what’s your advice for everyday investors eyeing cryptocurrencies right now?
**Jeff Dorman:** Be cautious, but do your research. The volatility can be both exhilarating and terrifying. It’s crucial to have a clear understanding of the assets you’re investing in and to not invest more than you can afford to lose. Diversification is key—consider spreading your investments across different cryptocurrencies instead of putting all your eggs in one digital basket.
**Editor:** Great insights, Jeff! As we continue to watch this evolving landscape, what are you most excited about in the upcoming months?
**Jeff Dorman:** I’m looking forward to more innovation in the space, particularly with decentralized finance (DeFi) and non-fungible tokens (NFTs). We could see significant developments that not only strengthen the market but also attract institutional investors. The potential for Bitcoin and other cryptos to redefine traditional finance is incredibly thrilling.
**Editor:** Thank you for your time, Jeff! We appreciate your thoughts on this dynamic market and look forward to seeing how it unfolds.
**Jeff Dorman:** Thank you! Always a pleasure to discuss the future of crypto.
