The &#34;Trump Trade&#34; effect continues to heat up, with Bitcoin approaching the $90,000 mark.
The speculative sentiment brought about by Trump's election as President of the United States continues to rise. Following a record high of $82,000 on Monday, Bitcoin's price surged overnight, breaking through $89,000 per coin. During the Asian early trading session, it briefly rose to $89,600, nearing the $90,000 mark. As of the time of writing, it is reported at $87,800 per coin, with an intraday increase of nearly 7%.
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Previously, during the campaign phase, Trump promised that if elected, he would introduce more crypto-friendly regulatory rules and vowed to make the U.S. the world's crypto center and a Bitcoin superpower, in stark contrast to the Biden administration's crackdown on crypto assets.
According to CoinGecko, this shift in tone has sparked speculative buying of both large and small tokens, pushing the overall market capitalization of cryptocurrencies to about $3.1 trillion, surpassing the peak levels during the pandemic and setting a new historical high.
<h2>Soaring Continuously! Chase the Rise or Buy the Dip?</h2>
Since the dust has settled on the election a week ago, investor interest in cryptocurrencies seems to be on the rise.
On Monday, the open interest in Bitcoin and Ethereum futures at the Chicago Mercantile Exchange reached a historical high, with institutional investor participation continuously increasing. Data from Deribit, the world's largest crypto options exchange, also shows that the options market has even begun to bet that Bitcoin will break $100,000 by the end of this year.
Chris Weston, head of research at Pepperstone Group, wrote in a report that Bitcoin trading has entered &#34;beast mode&#34;:
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&#34;For investors who have not yet entered the market, the question is whether there is still room to chase this hot trend or to wait for a slight pullback and for speculative sentiment to partially fade.&#34;
</blockquote>
In addition to the boost from Trump's election, Bitcoin has also benefited from the approval of Bitcoin spot ETFs and interest rate cuts by the Federal Reserve, with its price doubling this year.
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Considering that although Trump has publicly expressed support for crypto assets, no substantial measures have been implemented yet, some believe that Bitcoin may soon face a correction.
Katie Stockton, a technical analyst at Fairlead Strategies LLC, also holds a &#34;short-term neutral&#34; stance on Bitcoin in her latest research report, stating:
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&#34;After such a steep rise, Bitcoin will naturally experience a digestion period.&#34;
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For investors who have not yet entered the market, the question is whether there is still room to catch up with this hot trend, or to wait for a slight pullback and for speculative sentiment to partially subside

- Following Donald Trump's election, Bitcoin prices surged, nearing $90,000 after reaching a record high of $82,000.  
- Trump's promise of favorable cryptocurrency regulations has fueled speculative buying, raising the overall crypto market value to approximately $3.1 trillion.  
- Despite the bullish sentiment, analysts caution that Bitcoin may soon face a correction due to the lack of concrete regulatory actions from Trump’s administration.

Bitcoin approaches $90,000, cryptocurrency market capitalization reaches an all-time high