Investing.com-- Bitcoin rose sharply on Tuesday, extending recent gains and notching new peaks as bets on friendlier regulation under a Donald Trump presidency continued to boost crypto markets.
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 5% at $85,933.0 by 09:15 ET (14:15 GMT), seeing a small pullback after hitting a record high of $89,436.1 earlier in the session.
Trump trade persists, Bitcoin shrugs off dollar strength
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 strong positive flows continued on Monday, Nov. 11.
Inflows into ether (ETH) ETFs reached a record $295.5 million, with BlackRock (NYSE:BLK)'s iShares Ethereum Trust ETF (NASDAQ:ETHA) and Fidelity's Fidelity Ethereum Fund (NYSE:FETH) each pulling in around $100 million, according to data from Farside Investors.
Bitcoin ETFs saw substantial interest as well, with $1.1 billion in net inflows, marking the second-largest total on record, per SoSoValue data. As bitcoin’s market cap hit a historic $1.78 trillion, surpassing silver to become the world’s eighth-largest asset, the IBIT ETF received the largest share at $765.5 million, while Fidelity's Fidelity Wise (LON:WISEa) Origin Bitcoin Fund (NYSE:FBTC) recorded $135.1 million in new investments.
The rally wasn’t limited to crypto ETFs. MicroStrategy Incorporated (NASDAQ:MSTR), the largest publicly traded holder of BTC, reached an all-time high, while shares of Coinbase Global Inc (NASDAQ:COIN) climbed past $320, marking their highest level since November 2021.
Mt Gox mobilizes $2.4 bln in Bitcoin
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.
Crypto price today: altcoins mixed, DOGE surges 40%
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 25% on Tuesday to $0.3586. 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 3% to $3,252.42, remaining close to a three-month high.
XRP jumped more than 10%, while SOL, MATIC and ADA fell between 3.8% and 4.5%.
Ambar Warrick contributed to this report.