Investing.com-- Bitcoin touched new record highs on Wednesday, as optimism over a Donald Trump presidency continued to support investor sentiment.
Major meme token Dogecoin also soared higher, continuing its stellar run-up to three-year highs in recent sessions after Trump confirmed Elon Musk and Vivek Ramaswamy will lead the Department of Government Efficiency (DOGE).
Bitcoin shot up to record highs of nearly $91,000 this week, as crypto saw a week-long rally after Trump’s election victory. But focus was now on just what his policies will entail for crypto, as well as the broader U.S. economic outlook.
The world’s largest cryptocurrency climbed more than 5% to $90,250.0 by 09:53 ET (14:53 GMT).
Bitcoin soars as Trump rally continues
Bitcoin continued registering new highs as enthusiasm over Trump’s election win now appeared continued, with focus turning to more cues on his planned policies.
Trump has vowed to make America the crypto capital of the world, and has even floated the idea of a national Bitcoin reserve. Crypto proponents expect this to result in a friendlier regulatory environment, lending Bitcoin more credibility as an investment vehicle.
On the economic front, Trump is widely expected to dole out more expansionary policies, which could potentially underpin inflation and interest rates in the long term.
Q4 of 2024 could be 'one for the books' for Bitcoin, says Nexo founder
Commenting on Bitcoin's latest surge, Nexo co-founder Antoni Trenchev said this isn't a "typical rally" but rather "a movement underpinned by a serious shift in the market’s fundamentals and maturity."
"Retail investors are surging in through newly accessible ETFs, and heavyweight players are eyeing Bitcoin as a viable reserve asset," Trenchev noted.
"The path to $100,000 will be defined by the tug-of-war between buy- and sell-side forces. With retail and institutional demand converging like never before, the final quarter of 2024 could shape up to be one for the books, catapulting Bitcoin to levels once thought beyond reach."
Trenchev describes the current environment for Bitcoin as uncharted territory in terms of price discovery, with every rise and dip highlighting the delicate balance between supply and demand.
He believes that Bitcoin’s market cap could eventually surpass that of gold a decade from, potentially increasing tenfold from current levels, though he cautions that the journey will be far from smooth.
In 2022, Trenchev said he remains bullish on Bitcoin, maintaining his forecast that the cryptocurrency will reach $100,000.
"The more bearish the consensus gets, and this appears to be happening right now, the more bullish I personally get," he said at the time.
Dogecoin soars on Trump’s DOGE announcement
Dogecoin jumped 13% to $0.4289, bringing its weekly gains to more than 120%.
The token was initially hit with profit-taking after Trump confirmed that Musk and Ramaswamy will lead the DOGE agency. Trump said the agency will work outside the government and will aim to reduce bureaucracy, "unnecessary regulations” and curb government spending.
The idea of DOGE was floated by Musk prior to the election and is seen as a reference to the meme token, although whether this will result in any actual, official use of the token remains unclear.
Musk has been a proponent of the token on social media, which is largely tied to its price action.
Crypto price today: Altcoins track Bitcoin gains
Broader crypto prices fell tracking a pullback in Bitcoin. World no.2 crypto Ether added over 1% to $3,331.29, hovering around its three-month highs.
ADA, SOL, XRP and MATIC traded between 0% and 7.5%.
Ambar Warrick contributed to this report.