Joe McCann sat in his Miami apartment, eyes glued to screens displaying bitcoin transactions as the US election results came in.
“When the first polls closed, we started to see massive buying in the United States and it hasn’t stopped since,” said Mr. McCann, founder of the cryptocurrency-focused hedge fund Asymmetric. “The sentiment in the crypto community is one of elation at this point.
Indeed, bitcoin has soared more than 32% since November 5 to a record high of more than $91,000 as traders bet that President-elect Donald Trump’s promised support for digital assets would lead to a regulatory regime. less restrictive and would breathe some life back into bitcoin after a few sluggish months.
On Binance, the world’s largest cryptocurrency exchange, the average daily bitcoin trading volume between November 6 and 13 jumped to around $493 million, nearly double the annual average of around $252 million dollars, according to cryptocurrency data provider Kaiko. Volumes on Coinbase were three times the average for the year during the same period, averaging over $108 million per day.
Meanwhile, U.S. exchange-traded funds that track the spot price of bitcoin, products favored by institutional investors, recorded their largest daily net inflow on record on November 7, at $1.43 billion, according to CoinShares.
Still, many market participants have warned that investors could be burned by profit-taking and market pullbacks in the coming weeks, Coinglass’ bitcoin “fear and greed” index – a measure of market sentiment – sitting firmly in “greed” territory.
“Expect some confusion as even the most sophisticated and connected market participants try to determine whether a Trump administration means a more balanced regulatory regime, a free-for-all in the Wild West, or whether Trump will just forget about cryptocurrencies altogether,” said Matthew Graham, managing partner at Ryze Labs.
CRYPTOCURRENCY MARKET EXCEEDS $3 TRILLION
It is certain that things are shaking up.
Bitcoin’s 30-day annualized volatility has risen to more than 58%, its highest level since September, after a 25% drop in June, according to data from The Block.
Market gains are not limited to bitcoin; the total value of the cryptocurrency market has reached an all-time high of $3.16 trillion, according to CoinGecko. Open interest on derivatives exchanges has reached an all-time high of more than $102 billion, according to Coinglass data.
Ethereum has surged about 32% since the election, while the market value of decentralized finance-focused tokens hit a five-month high of $93 billion.
Despite the initial enthusiasm, details about what exactly will change under a new administration remain unclear.
The main focus now is on Trump’s US Treasury Secretary nomination, with a few potential candidates, including Howard Lutnick and Scott Bessent, seen as more supportive of cryptocurrencies.
Ryan Lee, chief analyst at Bitget Research, warned traders to stay alert for any sudden pullback: “The appointment could trigger short-term speculation.
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