FX168 Financial News Agency (Asia Pacific) News Wednesday (November 13) Bitcoin's surge has temporarily paused, with traders evaluating the market impact of President-elect Donald Trump's support for cryptocurrencies.

According to data compiled by Bloomberg, since Trump's victory on November 5, Bitcoin has risen by about 32%, reaching a historic high of $89,968 on Tuesday.

Trump has promised to establish a friendly regulatory framework for cryptocurrencies, develop a strategic Bitcoin reserve, and make the USA the global center of this industry. Trump had been skeptical of cryptocurrencies, but after digital asset companies spent a significant amount of money to promote their interests during the campaign, he changed his attitude.

His stance has sparked optimism in the crypto community, leading to the market achieving an all-time high value. However, there are still thorny issues: whether Trump and Republican lawmakers will prioritize larger issues such as China policies and the US economy, potentially pushing cryptocurrency legislation to a lower priority.

"While we do not rule out further increases, many bullish news has already been priced in," wrote IG Australia Pty market analyst Tony Sycamore in a report.

Dogecoin

One of the recently strong-performing cryptos is Dogecoin, a token promoted by billionaire Elon Musk and favored by meme enthusiasts. This token, themed around the Shiba Inu, has doubled in price over the past five days.

Before the elections, Musk hinted at leading an efficiency department within the government whose abbreviation corresponds to this cryptocurrency. On Tuesday, Trump announced the establishment of this department to cut wasteful spending, with Musk set to co-lead. Dogecoin surged after the announcement.

In the global market, the focus is shifting to the upcoming US inflation data, which may impact external views on the further interest rate cut space of the Federal Reserve.

Yield rising.

On Tuesday, US bond yields and the dollar rose, indicating investors expect Trump's tax plan to bring inflation pressure. Stocks fell in this context as the relatively higher borrowing cost environment may pose resistance to risk investments, including cryptos.

"Relatively mild" leverage in the crypto market reduces the risk of sharp pullbacks, according to Noelle Acheson, author of the newsletter "Crypto Is Macro Now." Acheson mentioned that market corrections are appropriate but could be brief. Bullish factors remain strong.

On Tuesday, bitcoin briefly surpassed $90,000 on platforms like Coinbase Global Inc. According to Deribit's data, call options bets are mainly focused on bitcoin breaking through $100,000. Funds flowing into US bitcoin exchange-traded funds exceeded $1 billion at the beginning of the week.