30s Summary
Bitcoin reached a new high of $90,000 on Coinbase, despite a 5% dip early on Tuesday. The cryptocurrency market saw $940 million of leveraged derivatives trading positions go bust in a single day, the highest since the August 5 market crash. Donald Trump’s victory in the recent U.S. elections has boosted investors’ confidence, leading to increased investment in cryptocurrencies due to anticipated crypto-friendly regulations. Nathan McCauley, CEO of Anchorage Digital, noted that institutions are significantly influenced by government signals, and the expectation of a pro-crypto administration is driving increased investment.
Full Article
The crypto market is on a roll, showing no signs of slowing down. Bitcoin, the big daddy of them all, has jumped up to a new milestone of $90,000 on Coinbase, a crypto exchange platform. There was a minor hiccup though, as Bitcoin did dip about 5% to a little above $85,000 early on Tuesday. This slight drop scared off some last-minute buyers who had hopped on for a quick profit. However, this dip didn’t last long. Bitcoin’s price shot back up and even broke previous records, later in the day. In the past 24 hours alone, Bitcoin’s price increased by a solid 3.7%, while the overall market, as measured by the CoinDesk 20 Index, went up 5%.
As always, the crypto market had its share of thrills with a whopping $940 million of leveraged derivatives trading positions across all digital assets going kaput in a day, according to data from CoinGlass. This is the highest since the market crash on August 5, when trades unwinding in Japanese yen dipped Bitcoin below $50,000 for a brief period.
Donald Trump winning the recent U.S. presidential elections has been a boon for crypto prices, as investors are optimistic about more crypto-friendly regulations under his administration. Moreover, lower inflation, strong economic growth and global monetary benefits are encouraging them to invest more in riskier assets like cryptocurrencies.
Nathan McCauley, CEO and Co-founder of Anchorage Digital, a company that provides custody services for digital assets, says that institutions are more driven by government signals than retail investors. He maintains that anticipation of a pro-crypto government next year is encouraging institutions to invest big time in crypto like never before.