Bitcoin maintained a steady position just below its record high on Wednesday, continuing its strong performance from earlier in the week amid optimism surrounding potential U.S. cryptocurrency regulations. However, major altcoins experienced declines, as market sentiment was dampened by escalating tensions between Russia and Ukraine.
By 00:13 ET (05:13 GMT), Bitcoin had gained 0.6%, reaching $92,074.4, having briefly hit an all-time high of nearly $94,000 earlier in the day. The cryptocurrency’s price has been buoyed by growing optimism about the incoming U.S. administration under President-elect Donald Trump, who has promised to introduce more crypto-friendly policies.
Trump’s Victory Fuels Bitcoin Surge
The recent surge in Bitcoin’s value can largely be attributed to Trump’s election win, which has fueled expectations of regulatory changes that could attract greater institutional investment into the crypto space. Bitcoin exchange-traded funds have seen significant inflows following Trump’s victory, further supporting the cryptocurrency’s upward momentum.
With Trump set to take office in about two months, the market is eagerly awaiting details of his administration’s stance on cryptocurrency, which has become a focal point for investors.
In addition, MicroStrategy Incorporated, the largest corporate holder of Bitcoin, has also provided support for the cryptocurrency’s price. The company recently purchased a record $4.6 billion worth of Bitcoin, and CEO Michael Saylor has signaled that more acquisitions are on the horizon, potentially funded by additional debt.
Altcoins Struggle as Risk Appetite Wanes
Despite Bitcoin’s resilience, the broader cryptocurrency market faced headwinds on Wednesday. Increased geopolitical risks, particularly following Russia’s threat to lower its nuclear retaliation threshold, dampened investor sentiment. This uncertainty spilled over into stock markets, with investors holding off ahead of key earnings reports, including from NVIDIA Corporation.
Altcoins, which had seen strong gains in recent weeks, experienced profit-taking. Ethereum, the second-largest cryptocurrency, fell 0.8% to $3,110.35, while other major altcoins, such as Solana (SOL), XRP, and Polygon (MATIC), saw declines ranging from 0.7% to 2%. However, Cardano (ADA) managed to gain 5%, albeit on thin trading volume.
Among meme coins, Dogecoin slipped 0.4% but remained close to a three-year high reached earlier in November following Trump’s victory. The token gained attention when Trump mentioned it in relation to the formation of the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, sparking further social media buzz around the coin.
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