Since Donald Trump’s recent victory in the U.S. presidential election, Bitcoin’s value has seen substantial growth, reaching new record highs. Over the past week, Bitcoin’s price surged by an impressive $20,000, hitting an all-time high of $88,448, as reported by CoinDesk. In contrast, traditional assets like gold and the “magnificent seven” tech stocks have shown comparatively moderate performance.
On November 6, Bitcoin was valued at $66,700, surpassing the $77,000 level shortly afterward. Over the weekend, it crossed $80,000, and by the following morning, it had climbed to $82,000, continuing its ascent throughout the day. At the time of this publication, Bitcoin’s average rate was recorded at $87,740, according to CoinDesk. The CoinDesk 20 (CD20) index, which tracks the 20 largest and most liquid digital assets, has risen by 29% since the election. Other cryptocurrencies have also been experiencing significant growth.
Tech Stocks and Gold Lagging Behind
While Bitcoin and other digital assets are gaining momentum, the “magnificent seven” tech companies have shown mixed results. Shares of Apple, Amazon, Microsoft, Meta, and Nvidia all experienced declines, whereas Google saw a minor increase. Tesla, notable for its holdings of 9,720 bitcoins, showed a strong performance, rising by 9.6%. Meanwhile, gold prices dropped by nearly 3%, reflecting a potential shift in investor interest from traditional assets to cryptocurrencies, adds NIXSolutions.
According to CoinDesk analysts, this shift might indicate that investors are reallocating funds from tech stocks and gold into cryptocurrencies as the market anticipates Trump’s inauguration early next year. Throughout his campaign, Trump, a former U.S. president, expressed support for the cryptocurrency market, potentially boosting investor confidence in digital assets.
Spot Bitcoin ETF Sees Record Volume
Eric Balchunas, a senior analyst at Bloomberg, highlighted the high demand for Bitcoin-linked ETFs. The volume for iShares Bitcoin Trust ETF (IBIT), a leading spot Bitcoin ETF, surged by $1 billion within just 35 minutes of trading. This follows an even faster surge after the election, when the ETF’s volume increased by $1 billion within only 20 minutes.
As the market dynamics continue to evolve, especially with Trump’s inauguration approaching, we’ll keep you updated on further developments in cryptocurrency and traditional asset trends.