Bitcoin Rises Sharply Amid Trump Presidency Speculations

Bitcoin surged on Tuesday, extending recent gains and achieving new heights amidst speculation of favorable regulations under a Donald Trump presidency.

The largest cryptocurrency has been on a significant upward trend since Trump secured the 2024 presidential election last week. Despite indications of a cooling risk appetite in other sectors, particularly stocks, Bitcoin has maintained its rally.

In addition, major altcoins also experienced substantial gains on Tuesday, particularly the meme token Dogecoin, which rallied nearly 42%, reaching its highest level since May 2021.

As of 00:36 ET (05:36 GMT), Bitcoin was up 9.4%, valued at $88,313.1, after hitting a record high of $89,436.1 earlier in the session.

Trump Trade Persists, Bitcoin Shrugs Off Dollar Strength

Bitcoin's rise occurred despite the pressure from a stronger dollar in broader financial markets, fueled by speculation surrounding Trump's policies that have boosted the greenback.

Trump's campaign promises included more favorable cryptocurrency regulations and a vision of making America the crypto capital of the world, even suggesting a national Bitcoin reserve.

This anticipated regulatory friendliness is expected to enhance Bitcoin's legitimacy as an investment option, possibly attracting more institutional investors. Over the past week, there has been a rush into crypto exchange-traded funds, with Blackrock’s iShares Bitcoin Trust (NASDAQ:IBIT) seeing inflows exceeding $1 billion in a single day post-Trump's victory. Notably, the IBIT has now surpassed Blackrock's gold ETF in total assets.

Bitcoin's strength persists even with the dollar soaring to a four-month high. Concerns around inflationary policies under Trump have bolstered the dollar as market speculators bet on relatively higher long-term interest rates.

Mt Gox Mobilizes $2.4 Billion in Bitcoin

The defunct crypto exchange Mt Gox, previously linked to Bitcoin price vulnerabilities earlier this year, reportedly moved around $2.4 billion in Bitcoin to two wallets on Monday according to Coindesk.

This transfer of tokens may indicate a sale or distribution, as Mt Gox holds substantial Bitcoin reserves that are yet to be returned to creditors. However, the exchange has extended its distribution timeline until late 2025. Nonetheless, these developments did not dampen Bitcoin's rally.

Crypto Price Update: Altcoin Rally Resumes, DOGE Surges 40%

Overall, crypto prices sharply rebounded on Tuesday, reclaiming recent gains after a brief slowdown in the previous session.

Dogecoin continued to outperform with a remarkable nearly 42% increase, trading at $0.393216, driven by speculation regarding Elon Musk potentially being appointed to a role in the Trump administration.

Meanwhile, Ethereum, the second-largest cryptocurrency, rose by 4.4% to $3,319.0, nearing a three-month peak. Other cryptocurrencies such as XRP, SOL, MATIC, and ADA saw increases ranging from 1.9% to 5.6%.