Bitcoin surpassed the $90,000 mark, driven by a combination of political and economic factors following Donald Trump’s presidential election victory on November 5. On November 13, the cryptocurrency reached an all-time high of $93,300. It is currently trading at US$89,294.03 as of this writing.
The rally was accompanied by an influx of new investors, with 230,000 new Bitcoin addresses created after the election, bringing the total to 54.6 million. Analysts attribute the surge to a mix of optimism about Trump’s pro-crypto stance, a recent Federal Reserve interest rate cut, and increased participation from both corporate and retail investors.
Market data shows a sharp rise in the price of Bitcoin by 35%, from US$67,000 on November 5 to its peak eight days later. Even with a slight 5% pullback since then, Bitcoin remains resilient. This stability has been reinforced by dip-buying activity from both new and existing investors.
The post-election rally was also fueled by institutional moves, including MicroStrategy’s $42 billion Bitcoin acquisition plan and record inflows into Bitcoin ETFs. Over $2 billion in capital flowed into Bitcoin ETFs on November 11 and 12 alone, with the BlackRock iShares Bitcoin Trust leading the pack, now managing over $40 billion in assets.
Despite the global excitement around Bitcoin, Reserve Bank of Australia governor Michele Bullock has denied its role in the Australian economy. Last Thursday, speaking at the Australian Securities and Investments Commission’s annual forum, Bullock said Bitcoin is not a currency but a speculative asset. “Don’t call it an alternative currency,” he said. “It’s not a currency, it’s not money, it’s used as some sort of asset class.”
“I don’t understand it. I don’t really see the role of it, certainly in the Australian economy or the payments system. I’m not sure what its purpose is.”
ASIC chairman Joseph Longo described the question as the “stupidest theory” and said “Who cares?” during a panel discussion on rising prices.