The cryptocurrency market has momentarily paused its impressive surge that commenced following the recent U.S. election, but investors can anticipate a revival.
On Tuesday, Bitcoin slipped slightly by 1%, trading at $87,440.88, according to Coin Metrics. Just the day before, it had soared more than 10%, peaking at $89,623.00.
Many investors are optimistic that Bitcoin will continue to break records on its journey toward the coveted $100,000 mark later this year.
Since the election day on November 5, Bitcoin has gained over 26%, marking its first new record since March. Meanwhile, Ether declined by 3% on Tuesday, despite a significant 33% increase over the past week.
“Bitcoin is now in price discovery mode after surpassing its all-time highs early last Wednesday morning when Trump’s victory was officially announced,” noted Mike Colonnese, an analyst at H.C. Wainwright. “The prevailing positive sentiment is expected to carry through the remainder of 2024, with Bitcoin potentially reaching six figures by the year’s end.”
Crypto investors are celebrating President-elect Donald Trump’s commitment to creating a more favourable regulatory landscape for crypto businesses, which have long contended with unclear regulations.
While Bitcoin has generally been considered a safe asset in Washington, exempt from securities laws, many other cryptocurrencies and related startups have navigated a precarious grey area.
In the broader crypto market, many coins experienced a slowdown on Tuesday after a recent surge, including meme-coin Shiba Inu, which fell 4% after skyrocketing 57% in the previous week.
Related post: Trump’s Victory Just Sent Bitcoin to $82K – Wall Street is Stunned.
Notably, Dogecoin emerged as a standout performer, with gains exceeding 135% since November 5, likely bolstered by its association with Elon Musk, a significant figure in Trump’s electoral success. Dogecoin has recently seen a 14% increase.
In the stock market, both Coinbase and MicroStrategy saw their shares dip by approximately 6%. On Monday, Coinbase had rallied, jumping 19% to surpass $300 for the first time since 2021, just about 6% shy of its peak from that year.
Traders and analysts concur that this past week’s rally marks just the beginning of a more promising trend.
Source: CNBC H.C. Wainwright
