Just four hours ago, from the time of writing, the Bitcoin (CRYPTO: BTC) price rocketed to new all-time highs.
The world's original and biggest cryptocurrency topped US$76,460 (AU$116,769) for the first time ever.
It's since retraced a tad, currently trading for US$75,280, up 8% since this time yesterday. That sees it with an eye-popping market cap of US$1.49 trillion.
And it's not just the Bitcoin price that's rocketing.
Ethereum (CRYPTO: ETH), the second-biggest cryptocurrency with a market cap of US$327 billion, was up 10% over 24 hours. It is currently trading for US$2,706.
Unlike its bigger and older brother, however, the Ethereum price is still 44% below its own all-time high of US$4,892, reached on 16 November 2021.
On a broader level, according to data from CoinMarketCap, 98 of the world's top 100 cryptocurrencies are trading in the green today.
And Bitcoin investors look to have Donald Trump's victory in the United States presidential elections to thank for that. The former and future US president has made his support for the crypto sector very clear.
Image source: Getty Images
What the experts are saying about Bitcoin and cryptocurrencies
Commenting on the big run higher for the Bitcoin price and most other cryptocurrencies, Mena Theodorou, co-founder at Australian crypto exchange Coinstash, said:
With this shift in US leadership, the cryptocurrency sector is poised to enter a pivotal period under President Trump's administration. His commitment to deregulation and campaign promises to position the US as the 'crypto capital of the planet' could drive unprecedented innovation within the sector. We anticipate greater institutional investment and retail adoption worldwide.
Theodorou cautioned that, "In the short term, however, this election result introduces an element of unpredictability, with the potential for heightened market volatility."
John Toro, head of trading at Zerocap, added:
Following the US Presidential election, risk assets have performed particularly strongly, in line with expectations of forward-looking fiscal policy by the Republican nominee and now President Donald Trump. Of particular note, has been the strength of cryptocurrencies, led by Bitcoin…
The cryptocurrency community are particularly excited by the expected progression of digit asset regulation, as well as the potential for BTC to be included as an asset base of US foreign reserves.
Pity the short sellers
Just as with ASX shares, investors can take up short positions on Bitcoin, Ethereum and other cryptocurrencies.
And short sellers betting against a renewed Bitcoin rally are feeling the pain today.
"The spot market is flying, and bitcoin shorts are getting decimated," Swyftx lead analyst Pav Hundal said (quoted by The Australian Financial Review).
Hundal continued:
Rightly or wrongly, a lot of traders in Asia-Pacific are betting that the crypto summer is back and right now, local retail is trading strongly. It's almost all buy action on our order books right now…
It is quite likely that we will see a correction heading into the US trading window… But this is spot-driven demand and that makes it meaningful. It's not a derivatives-fuelled pump.
The Bitcoin price is now up 121% over 12 months.
