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Bitcoin Price Surges by 30% Amid Trump’s Election Impact 🤑🚀

Bitcoin Price Surges by 30% Amid Trump’s Election Impact 🤑🚀

Bitcoin’s Recent Surge: Insights and Implications 🚀

In the aftermath of Donald Trump’s victory in the 2024 United States presidential elections, Bitcoin’s valuation experienced a remarkable climb. Just one day before the elections, Bitcoin traded at approximately $69,000, while it neared $90,000 the following night. Within a week, from November 5 to 12, the price of Bitcoin surged by 30%—a significant increase that raises questions and perspectives among investors and market observers alike.

The Influence of Trump on Bitcoin Prices 📈

The connection between Trump’s political moment and the rise in Bitcoin’s price is underscored by the concurrent increase in other assets’ market values. For instance:

  • Nvidia’s stock appreciated by 8.7% during this timeframe, later settling at around 5%.
  • In contrast, gold’s market value declined by 5%.
  • Tesla’s shares surged by 40%, reaching new heights but still struggled to recover from earlier losses, partly due to Trump’s influence combined with Elon Musk’s role in market perceptions.

Bitcoin stands out regarding the Trump effect since it reached new all-time highs on November 6, the day after his electoral win. Compared to Tesla’s performance, which, despite a 40% increase, falls short of its 2021 peaks, and Nvidia, which is at a mere 1% gain from its October levels, Bitcoin is closing in on its previous max of $69,000 and shows an 18% increase from its March zenith. Trump’s vocal aspirations to make the United States a global hub for cryptocurrencies undoubtedly play a role in this.

Future Predictions for Bitcoin 🌍

Despite the impressive 30% rise in Bitcoin’s price over the week, there remain lingering doubts about the sustainability of such an increase. Analysts express varying opinions on what this implies for Bitcoin’s future trajectory:

  • Continued FOMO: Some analysts suggest that FOMO (Fear of Missing Out) may continue to drive Bitcoin’s price upward, pushing it beyond the $90,000 mark, particularly if it stays above $87,000.
  • Temporary Correction: There could be a slight price adjustment that would not significantly hinder the overall upward trend. This scenario allows room for initial declines followed by subsequent increases.
  • Retracement Scenario: A potential decline could mark a pause in the current bullish trend, leading to a dip to lower values.

Could Bitcoin Hit $100,000? 🎯

The impending possibility of Bitcoin reaching the $100,000 milestone hangs in the balance. Reflecting on the previous cycle that culminated in April this year, the highest price recorded was around $69,000 in November 2021. Prior to that, the price had hit $64,000 in April, only to plummet due to a ban on crypto trading in China that deprived the market of vital capital.

Had there been no such disturbances in the market during 2021, it’s likely that Bitcoin would have followed the trend of previous cycles and surpassed the $100,000 mark by year-end. A key variable now is the return of Chinese capital, despite the ongoing ban, which could boost Bitcoin’s price back to those heights.

Understanding the Current Market Context 📊

The dynamics influencing Bitcoin’s price also relate closely to upcoming events, notably the U.S. presidential elections. In previous election years—2012, 2016, and 2020—Bitcoin typically saw a price rise leading to new highs or close to them from December through January of the following year. This trend holds the potential to extend further into this year as Donald Trump prepares to assume office on January 20, 2025, which might lead to a classic “sell-the-news” phenomenon.

Historically, the post-election phases did not stifle bullish trends but merely momentarily slowed them. The upcoming period, particularly between February and April 2025, could renew growth before possibly undergoing a minor retracement, followed by another cycle of growth later that year.

Even if the current upward momentum sees a temporary conclusion, this does not eliminate the possibility of fresh bullish phases arising throughout 2025, especially if the dollar begins to decline significantly post-elections. Generally, the dollar weakens for several months after election cycles, and analysts anticipate a drop, potentially impacting Bitcoin positively.

Currently positioned above 105 points, the Dollar Index may diminish to around 90, akin to patterns observed in 2013 and 2017. Given the complexity of these factors, observing Bitcoin’s path in the coming months will be crucial for understanding its long-term trends and movements.

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Bitcoin Price Surges by 30% Amid Trump’s Election Impact 🤑🚀