The post-2024 US election rally in risk assets has continued to be strong since former President Donald Trump's landslide victory, with stocks, Bitcoin and many other cryptocurrencies hitting new record highs.
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| Trump prepares to return to the White House, Bitcoin is given 'rocket fuel', the cryptocurrency market is hot. (Source: Kitco) |
As the closing bell rang, Bitcoin closed at a record high of $89,000 for the first time, stocks and cryptocurrencies surged, while gold and silver prices completely erased their gains of the past month.
All major North American stock indexes rose, with the S&P 500 closing above 6,000 and the Dow Jones above 44,000 with gains of 0.10% and 0.69%, respectively, while the Nasdaq closed up 0.06%.
Meanwhile, the precious metals sell-off continued, with both gold and silver hitting new lows. Spot gold prices continued to fall to support at $2,600 an ounce.
For Bitcoin, data provided by TradingView shows that after trading between $80,000 and $82,000 overnight, the North American market open once again provided the rocket fuel Bitcoin was waiting for, as it soared from $81,680 at 9:30 a.m. to a new high of $82,620 just 11 minutes later and set a new all-time high of $84,440 just 30 minutes later, before continuing to climb to $88,189.72, now approaching $90,000. This is a staggering 9.63% gain for Bitcoin on the day.
However, observers say this is just the starting stage, and exciting developments are still ahead.
To the question posed, “Will Bitcoin continue to outperform and reach new highs against gold?”, some analysts are quite confident in the answer - Bitcoin seems more likely to outperform gold.
It is easy to see that Bitcoin and the cryptocurrency “ecosystem” are continuing their bull run since President-elect Donald Trump won and began preparing for his official return to the White House.
“What we’re seeing is that everyone wants to get in on the Trump deal sooner than expected,” said Emmanuel Cau, head of European equity strategy at Barclays.
The “Trump trade” is a bet that Mr. Trump will win reelection and implement new policies that are friendly to business and the economy in his second term, even though those policies could cause large deficits in the federal budget and lead to higher interest rates and inflation in the US in the long run.
“Investors are willing to take risks, even if protectionism increases,” said Mabrouk Chetouane, chief global market strategist at Natixis Investment Managers, referring to President-elect Donald Trump’s plans to sharply increase tariffs on imports into the United States. Traders are pricing in Trump’s promise to cut taxes and tariffs, boosting the dollar and triggering a sell-off in U.S. government bonds.
Meanwhile, since the November 5 election, bank stocks have also been on a strong uptrend as investors hope that Mr. Trump’s return to the White House will lead to loosening of banking regulations. Stocks in the “Trump trade” include GameStop and Tesla, which rose 10% and more than 9%, respectively, in the session.
Cryptocurrencies are another investment vehicle that benefited from Trump’s victory, as the market believes the Republican president-elect will ease regulatory oversight of the sector.
"Cryptocurrency is entering a new era. Mr. Trump previously promised to make the US the 'crypto capital of the world'. His advisory group also supports crypto. This has caused crypto to surge," said Alex Thorn, research director at Galaxy Digital.
Bitcoin is considered a low-volatility asset regardless of the outcome of the election. Cryptocurrencies are not considered securities, even though the Securities and Exchange Commission or Mr. Trump have made big moves on bitcoin, such as proposing a national Bitcoin reserve fund. In return, cryptocurrencies could gain new momentum if Mr. Trump is "friendly" to this asset class.
From the Bitcoin 2024 Conference in Nashville, USA (July 27), Mr. Donald Trump's speech "shocked" and "heated up" the cryptocurrency market, with the intention of turning Bitcoin into a strategic reserve currency for the world's largest economy.
At that time, the future US President stated that, if he returned to the White House again, one of his goals was to establish a "national strategic Bitcoin reserve" to turn the cryptocurrency into a "long-term national asset to benefit all Americans".
Affirming that he would turn the US into the "cryptocurrency capital of the world" - the place to "rule cryptocurrencies", Mr. Trump said, "if cryptocurrencies decide the future, I want it mined, minted and made in the United States. And if Bitcoin skyrockets... I want America to be the leading country", CNN quoted Mr. Trump.
This is also a 180-degree "turn" - a surprise at the last minute in Mr. Donald Trump's election campaign, because before this election, former President Trump also criticized Bitcoin many times. In 2019, Mr. Trump said that these assets "are not money, the price fluctuates a lot" and "are not based on anything". In 2021, Mr. Trump continued to criticize Bitcoin "as a scam". But then, he completely changed his opinion, switched to supporting cryptocurrencies and launched NFT collections, earning millions of dollars. In a meeting with Bitcoin mining companies (June 2024), Mr. Trump stated that the US should produce more Bitcoin.
Source: https://baoquocte.vn/ong-trump-chuan-bi-tro-lai-nha-trang-bitcoin-duoc-cap-nhien-lieu-ten-lua-thi-truong-tien-dien-tu-nong-ham-hap-293470.html
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