Bitcoin has reached a new all-time high, spurred by investor enthusiasm and a wave of “fear of missing out” (FOMO) amid favorable market conditions, said Alexander Blume, CEO of digital asset firm Two Prime. Blume noted that “BTC and nearly all risk-on assets have rallied following Trump’s election victory,” reflecting widespread optimism for policies that could benefit business and innovation.
“The market is largely expecting pro-business tax cuts, reduced regulation, especially at the SEC [U.S. Securities and Exchange Commission], and the continuation of increased government spending,” the executive detailed, adding:
Until Trump gets into office, there is nothing based in reality to dampen hope and speculation.
The positive sentiment has driven bitcoin, which Blume calls “a top indicator of global liquidity and loose money,” to rally to new highs, while the broader cryptocurrency market has been “massively de-risked, now that a pro-crypto administration has gained power.” Control of the House and Senate also raises the possibility of “real rules and fair regulation” in the upcoming term, he opined.
Blume pointed to bitcoin’s strong performance as part of a long-term pattern, noting: “BTC is showing signs that it continues to follow its four year parabolic pattern, with high returns usually following the U.S. elections and the four year global liquidity cycle.” This pattern has boosted confidence among investors who now feel “it’s time to put on the gas,” he described.
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Bitcoin surpassed the $81,000 mark, driven by a continuous rally, high trading volumes over the weekend, and bullish futures market activity, with traders betting on further increases.
Dogecoin and Shiba Inu led the gains among major cryptocurrencies, with dog-themed tokens adding 30% over the past 24 hours.
Market moves follow Donald Trump’s presidential win and anticipation around a strategic bitcoin reserve as per a July campaign promise.
https://cointelegraph.com/news/bitcoin-can-hit-1-m-but-at-what-cost-michael-van-de-poppe
