Key Points
- Bitcoin surged to a new all-time high of $75.410 on the U.S. election night, outperforming U.S. stocks.
- Despite this, some large players have started reducing their Bitcoin exposure.
Bitcoin, also known as BTC, experienced a significant surge of nearly 8% to reach a new all-time high (ATH) of $75.410 during the U.S. election night. This surge was noted on the Coinbase exchange.
Even though there was slight profit-taking, BTC stayed just below the record level, with a value of $73.8K. All markets saw a rally following Trump’s apparent lead, but this ‘Trump Trade’ seemed to have a better impact on BTC than on U.S. stocks.
Performance Comparison
In the past five trading days, BTC saw a 6% increase, while the S&P 500 Index (SPX) and the tech-heavy Nasdaq only surged by 1%. Year-to-date, BTC gains have reached 67%, which is nearly 45% more than SPX’s 22%. This means that BTC has outperformed U.S. stocks by three times.
Post-election Outlook
Historically, BTC has performed well after U.S. elections, and it is expected that the cryptocurrency could continue this uptrend. Analyst Stockmoney Lizards believes that the recent surge could be the starting point for a rally towards a $100K target. However, CryptoQuant founder Ki Young Ju has advised caution, projecting that BTC could pump 30% to 40% max (about $96K to $103K).
Young Ju also noted that long-term holders (LTH) who have held through the bear market could begin to offload and book profit. Data from Glassnode shows that the number of whale entities with over 1K BTC has dropped from 1690 in mid-October to 1658 as of 5th November. This indicates that some large players have started reducing their BTC exposure.
It is unclear whether this is a pre-election de-risking or a long-term profit-taking trend as BTC prints new ATHs. Regardless, analysts’ assessment of BTC’s long-term outlook remains positive, with projections suggesting that BTC could hit the $90K-$100K range during this cycle. However, it is also expected that whale entities may continue to reduce their exposure.
