Bitcoin tops $93,000 as investors react to election and inflation data

Bitcoin rallied above $93,000 for the first time on November 13, adding to its postelection rally, as traders dealt with October inflation data, according to a detailed report by CNBC.

The price of the flagship cryptocurrency was last higher by more than 3 per cent at $92,612.27. At one point, it briefly rose to a fresh record of $93,469.08. The ongoing surging in the Bitcoin’s value is due to the anticipation of weaker regulations in the upcoming Trump administration. As promised by the President elect in many of his election rallies.

Experts believe Trump’s embrace of cryptocurrencies during the presidential campaign and his venture into crypto trade is attracting investors on the hope and expectation that the new administration would be crypto-friendly, the CNBC report explained further.

The Trump campaign accepted donations in cryptocurrency and he also appeared at industry events, promising to make the US “the crypto capital of the planet”.

Traders have digested the most recent data

Further, traders were digesting the most recent consumer price index, which showed prices increased 0.2 per cent in October, bringing the 12-month inflation rate up to 2.6 per cent. That was in line with expectations.

Bitcoin, which has recently benefited from a big postelection rally across risk assets, is seen by many investors as a hedge against potential fiscal policy that could spark inflation. Many market participants have extremely high expectations from Bitcoin it is in part due to the tremendous rally in the price of the asset along with the optimism surrounding it.

Other cryptocurrencies also got a small boost as traders digested the past week of postelection gains. Ether and the Solana token were each higher by about 1 per cent.

Dogecoin added 3 per cent. It has been one of the biggest winners since the election due to Tesla CEO Elon Musk’s involvement in President-elect Donald Trump’s campaign and forthcoming role in his administration, which was announced Tuesday night.

Now it will be interesting to see how the crypto-currencies behave going ahead, when once the Trump administration takes over. It will also be crucial to see how the government of US and the Federal Reserve manages the overall debt on the US economy going ahead by balancing inflation, demand and interest rates properly because as things stand there are going to be fiscal challenges for the US to deal with.