The world’s biggest cryptocurrency has been on a tear since last week after Trump won the 2024 presidential election. Bitcoin has also largely sustained its rally despite signs that risk appetite was cooling in other asset classes, especially stocks.
Major altcoins also rose sharply on Tuesday, with meme token Dogecoin rallying nearly 42% and reaching its highest level since May 2021.
Bitcoin traded up 9.4% at $88,313.1 by 00:36 ET (05:36 GMT), after hitting a record high of $89,436.1 earlier in the session.
Bitcoin rose despite pressure from a stronger dollar on broader financial markets, as speculation over Trump’s policies boosted the greenback.
Trump campaigned on promises of friendlier crypto regulation, vowing to make America the crypto capital of the world. Trump had also floated the idea of a national Bitcoin reserve.
The prospect of friendlier U.S. regulation is expected to give Bitcoin and crypto more legitimacy as an investment destination, potentially attracting more institutional capital. Investors were seen piling into crypto exchange-traded funds over the past week, with Blackrock’s iShares Bitcoin Trust (NASDAQ:IBIT) seeing over $1 billion inflows in a single day after Trump’s victory.
The IBIT also surpassed Blackrock’s gold ETF in total assets held.
Strength in Bitcoin came even as the dollar shot up to a four-month high. Expectations of more inflationary policies under Trump underpinned the dollar, as markets bet on relatively higher interest rates in the long term.
Defunct crypto exchange Mt Gox, which was at the heart of Bitcoin price weakness earlier this year, was seen moving about $2.4 billion in Bitcoin to two wallets on Monday, Coindesk reported.
A mobilization of tokens usually heralds a sale or distribution, with Mt Gox still left with a large reserve of Bitcoin it still needs to return to creditors.
But the exchange had lengthened its timeline for the planned distributions until late-2025. Reports of the token mobilization also did little to deter Bitcoin’s rally.
Broader crypto prices rose sharply on Tuesday, picking up recent gains after losing some steam in the prior session.
Meme coin Dogecoin remained an outperformer, rallying nearly 42% on Tuesday to $0.393216. The token was boosted by increasing speculation that Elon Musk, who is a proponent of the crypto, will secure a position in the Trump administration.
World no.2 crypto Ether rose 4.4% to $3,319.0, remaining close to a three-month high.
XRP, SOL, MATIC and ADA rose between 1.9% and 5.6%.
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