itcoin's post-presidential election surge has surged the digital currency to an all-time high of $93,477, up 25% in just two weeks. At the same time, gold– a perceived safe-haven asset– has lost 5%, reflecting a remarkable shift in investor sentiment.
Bitcoin Reaches All-Time High: $93,477; 25% Gain in Two Weeks
From $74,800 since the U.S. election, Bitcoin soared to $93,477 within 14 days, representing a 25% surge in price. The rally comes after a nearly 10% slump in early November, in which Bitcoin briefly fell to $67,000.
According to analysts, this rebound reflects positivity over the crypto-friendly policies of the new administration. Institutional investors also join the rally, with volumes on bigger exchanges like Coinbase and Binance exchanging more than $85 billion a day, up 40% from the prior month.
Cathie Wood of ARK Invest said, "Bitcoin is showing signs of resilience and strength, even at these high levels. It has the potential to reach $150,000 in the next few years."
Gold Drops 5% as Dollar Strengthens
Meanwhile, gold was off 5% from its post-election peak. It comes after the US dollar index, DXY, surged to 106.5, its highest in three months. Ordinarily seen as a hedge against economic uncertainty, gold has taken a back seat as investors shift to riskier assets.
However, according to data from the World Gold Council, the gold-backed ETFs have shed US$1.2 billion in the past week - marking the fourth consecutive week of outflows, an indication of fading interest in the yellow metal with the overall market expecting an economic turnaround under the new administration.
Crypto Market Cap Nears $3 Trillion, But Volatility Looms
Total cryptocurrency market capitalization currently sits at $2.96 trillion, up from $2.75 trillion pre-election. Not all digital assets, however, have ridden the rising tide with Bitcoin. Ethereum pauses around $5,200, with smaller tokens like Solana and Cardano mixed within a 5% range.
Market participants are saying that Bitcoin's next pivotal resistance is at the $95,000 level, and if this doesn't get breached, there's likely going to be a pullback toward $85,000. "The $90,000 level is pivotal," says crypto strategist Michael Van de Poppe. "If Bitcoin holds, we could see another leg up toward $100K."
This puts gold's role as a financial hedge in doubtful territory with Bitcoin now cemented as a mainstream asset. They believe that continued institutional adoption could support a price of Bitcoin reaching $100,000 by early 2025. Meanwhile, as long as economic optimism continues, Gold will likely be under pressure.
For investors, the post-election panorama is set by a dramatic choice between traditional stability and the high-risk, high-reward world of digital assets.
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