Bitcoin capped off a big week on Friday, November 8, as the digital currency hit a new all-time high following Donald Trump’s decisive victory in the 2024 presidential election.

The world’s most prominent cryptocurrency rose to as much as $77,312.18 on Friday, according to Coinbase data from TradingView.

At that point, the digital asset had risen more than 12% over the course of seven days and was trading at an all-new high, according to additional figures from Coinbase.

After reaching this final high, bitcoin reversed somewhat but still retained the vast majority of its recent gains for the remainder of the day.

When asked to explain the cryptocurrency’s price movements over the past week, market experts identified a short list of causal factors.

Trump victory bullish for crypto

The first and most notable development that they say drove the digital currency’s recent fluctuations was this year’s US presidential elections, which resulted in a clear victory for Trump, who will serve a second term from January.

Several analysts highlighted how positive this outcome could be for the crypto/blockchain industry.

“Crypto enthusiasts are generally happy to see Trump in power as he is a vocal supporter of Bitcoin and blockchain technology,” Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, said via email.

The TikTok influencer named Wendy O also weighed in, highlighting that Trump’s open support for both Bitcoin and cryptocurrencies in general has been very bullish for the digital currency markets.

She stated via a direct message sent via space to take action. to jurisdictions with friendlier regulations.

“Now that Trump has been elected, long-term trust in the crypto industry has been restored as Trump promised comprehensive regulation, the creation of a Bitcoin Strategic Reserve, and the ability for individuals to retain control of their own keys” , continued Wendy O. .

Sifling also sheds some light on how the outcome of the 2024 presidential election is likely to influence financial and economic policy, including the regulatory framework for cryptocurrencies, and how these developments together will impact assets such as stocks and digital currencies such as bitcoin.

“While current regulators have given mixed signals to crypto companies, I believe people are under the impression that Trump will release a plan to cement America’s place in the world’s crypto ecosystem,” he stated.

“People like Gary Gensler have also waged war on crypto during his tenure as regulator, and market participants believe he will soon be replaced by someone more favorable to the industry,” Sifling said.

“This, combined with the general optimism about deregulation and lower taxes, has created quite a favorable backdrop for risky assets like Bitcoin going forward.”

Brett Munster, portfolio manager for Blockforce Capital, also gave his views on how Trump’s victory could result in a significant change in the regulatory framework of the world’s largest economy.

“A Trump presidency offers a potential shift for the crypto industry, moving it from years of regulatory hostility to a much more favorable position,” he wrote via email. “Trump’s campaign took a notable pro-crypto stance, much stronger than Harris’ platform, signaling potential support for digital assets at the federal level.”

“Even if some of Trump’s promises were campaign rhetoric, a neutral or hands-off stance would be a substantial improvement over the previous administration’s more hostile approach,” Munster noted.

Downballot victory AA

Shedding further light on the situation, the portfolio manager claimed that the country’s government officials are increasingly open to digital currencies.

“Remarkably, it wasn’t just Trump’s victory that signals a favorable regulatory environment for crypto,” he stated. “In Ohio, Bernie Moreno’s victory over incumbent Sherrod Brown – one of the Senate’s most outspoken crypto critics and former chairman of the Senate Banking Committee – represents a major win for the industry.”

“Moreno is a strong supporter of crypto, and with Tim Scott, another outspoken proponent, likely to chair the Banking Committee, the Senate’s influence on crypto policy could take a pro-industry turn. Scott’s public advocacy, underscored by his appearance at Bitcoin 2024, is an example of growing pro-crypto sentiment in Congress,” Munster said.

Fed cuts interest rates in November

Several analysts also highlighted the Federal Open Market Committee’s decision to cut rates again during the November policy meeting.

Following this event, the FOMC announced in a statement that it would lower the target range for the federal funds rate by 25 basis points, to between 450 and 475 basis points.

Independent cryptocurrency analyst Armando Aguilar spoke about this development and stated that it helped the markets with bullish sentiment.

The fed funds rate affects a wide range of borrowing costs, and lowering it could make it easier for consumers and businesses to obtain credit, which in turn could help spur more robust economic growth.

Many different risk assets, including stocks and cryptocurrencies, stand to benefit from stronger economic conditions and the impact they have on the mindset of global investors.

Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.