With Trump sweeping seven swing states, cryptos have paved the way for development in the USA.

On November 12, $Bitcoin (BTC.CC)$ breaking through the $0.089 million mark, facing the challenge of the $0.09 million mark, surpassing silver in market cap to become the world's eighth largest asset. Other cryptos have also followed Bitcoin's upward trend. $Ethereum (ETH.CC)$ is the world's second largest digital currency after Bitcoin, with a cumulative increase of nearly 40% since November 5, reaching $3,300.

also saw significant gains, up nearly 40% since November 5, surpassing $3,300. $Coinbase (COIN.US)$ Since the presidential election day, the cumulative increase has reached as high as 74%; cryptos miners$CleanSpark (CLSK.US)$ Rise by over 70%, $Riot Platforms (RIOT.US)$ 、 $MARA Holdings (MARA.US)$ Both increased by over 60%; "large holders" $MicroStrategy (MSTR.US)$ Rose more than 50%.

Cryptocurrency spot etfs in the Hong Kong stock market have also performed very well, surging over 37% since the presidential election. $Harvest Ether Spot ETF (03179.HK)$ 、 $ChinaAMC Ether ETF (03046.HK)$ 、 $Bosera HashKey Ether ETF (03009.HK)$ all rose by over 37%. $ChinaAMC Bitcoin ETF (03042.HK)$ 、 $Harvest Bitcoin Spot ETF (03439.HK)$ 、 $Bosera HashKey Bitcoin ETF (03008.HK)$ Rising more than 30%.

What are the factors driving the current crypto market?

• Trump wins the election

One of the main driving forces behind the rise in bitcoin prices is Trump's victory in the US presidential election last week. During this year's campaign, Trump has been showing goodwill towards the cryptocurrency industry. His victory has also led many bulls on Wall Street to see the arrival of the "crypto gold era".

According to the latest report from The Washington Post, Trump is preparing for the US government to take a more lenient stance on digital currencies. He is searching for key candidates friendly to the crypto industry, while his senior advisors are seeking opinions from crypto executives on potential changes in federal policies. The initial discussions focus on a series of financial regulatory agencies, including the SEC.

David Bailey from BTC Inc, the organizer of the Bitcoin conference, stated:

The increasing possibility of Trump's victory and the GOP's overwhelming success provide a unique opportunity to advance transformative legislation, making the USA a global powerhouse for Bitcoin and digital currencies.

It is expected that the Trump administration will support the crypto industry and, due to control of both houses of Congress, will have greater power to enact favorable legislation. Trump and congressional allies have previously expressed support for establishing a Bitcoin national reserve.

Bloomberg analyst John Stepek said that the reason for the Bitcoin surge is because many people believe that Trump's governing style may lean towards the "small government" ideology, reducing government intervention and spending, rather than the "big government" supported by modern monetary theory (mmf), which promotes economic growth through expansionary fiscal policies. In this scenario, Bitcoin as a decentralized asset may benefit.

• Funds rushing into the market

Yesterday, the globally renowned "hodl Bitcoin" organization $MicroStrategy (MSTR.US)$ Disclosure: Between October 31 and November 10 this year, the company purchased approximately 27,200 Bitcoins using $2.03 billion raised through share issuance, at an average transaction price of $74,463 per Bitcoin.

According to statistics, MicroStrategy currently holds about 1% of the global circulating Bitcoin, with its 279,420 Bitcoins holding a current value of around $24 billion, while the company's market cap is approximately $70 billion.

In addition, under Musk's Tesla, there are currently 11,509 BTC held, and with the rising price of Bitcoin, the value of its Bitcoin holdings has now surpassed $1 billion.

It is worth noting that the sharp increase in Bitcoin has also driven MicroStrategy's stock price to surge. It has risen by nearly 440% this year, with MicroStrategy's stock price increasing by over 2,500% since August 2020, while Bitcoin has risen by approximately 660% over the same period.

Furthermore, the U.S. Bitcoin ETF, after a large influx of funds, achieved a historical moment - on last Thursday, the total amount of funds flowing into the Bitcoin ETF reached $1.37 billion, marking the largest single-day capital inflow in history.

Among the 11 U.S. ETF spot ETFs, BlackRock's iShares Bitcoin Fund $iShares Bitcoin Trust (IBIT.US)$ The institution with the largest assets, latest data shows that its assets (34.3 billion US dollars) have exceeded Blackrock's iShares Gold ETF for the first time. $Gold Trust Ishares (IAU.US)$ (32.9 billion US dollars). However, compared to the largest gold ETF in the market, IBIT is still about 30 billion US dollars less. $SPDR Gold ETF (GLD.US)$ This reversal is quite symbolic compared to Bitcoin. Because compared to the long history of gold, and the background of ETFs that have been listed for almost 20 years, Blackrock's Bitcoin ETF was just launched in January of this year. In just 9 months, this alternative asset ETF has attracted 27 billion US dollars of inflow.

From a macro perspective, the Fed's rate cut has injected more liquidity into the market. The lower interest rate environment makes investors more inclined to seek high-yield investment channels, increasing the demand for cryptos.

• The Fed cut interest rates.

From a macro perspective, the Fed's rate cut has injected more liquidity into the market. The lower interest rate environment makes investors more inclined to seek high-yield investment channels, increasing the demand for cryptos.

How much can it rise in this round?

Buoyed by the news of Trump's victory, more and more people are bullish on the price of bitcoin reaching $0.1 million by the end of the year.

Matt Hougan, Chief Investment Officer at Bitwise, stated that despite more and more investors seeking to join this upward trend, long-term holders are not willing to sell Bitcoin below $0.1 million, and short sellers are also not daring to go against the trend.

Geoff Kendrick, the global head of digital asset research at Standard Chartered Bank, stated that after Trump's victory, the price of bitcoin is expected to reach $0.125 million by the end of this year and $0.2 million by the end of 2025.

Fadi Aboualfa, the research director at crypto custody company Copper.co, predicts that bitcoin could reach $0.1 million when Trump takes office as President on January 20, 2025. Fundstrat co-founder Tom Lee also believes that bitcoin could reach $0.1 million this year.

The latest research report from Huayuan Securities points out that the primary uptrend of the crypto bull market has come, with Trump's victory and the Fed's expected 25BP rate cut, the Middle East situation remains unescalated, the window for long volatility trades temporarily closes, U.S. stocks are in full 'risk on' mode, suggesting a focus on volatile crypto assets with high elasticity.

However, in the short to medium term, investors still need to be mindful of the risks of a pullback.

Editor/Somer