Bitcoin hits NEW ALL TIME HIGH as Trump wins US election | Bitcoin News by CoinCorner

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What an insane week, as Bitcoin has broken all-time highs and the US has elected a pro-Bitcoin president, Donald Trump! A UK pension fund has become the first in the country to allocate part of its portfolio to Bitcoin, and the Bitcoin ETFs are accumulating capital so fast that they're leaving their gold equivalents in the dust.

We are so back! Bitcoin has just hit new all-time highs of $76,000 per coin, blasting through the previous resistance level of $73,000 on Wednesday. The price moved by around 10% in just a few hours following the announcement that Donald Trump had declared victory in the US presidential election.

Throughout his campaign, Trump positioned himself as a pro-Bitcoin candidate, promising favourable regulation for the industry and even discussing the possibility of using the asset as a strategic reserve for the US government. Now, love him or hate him, this is great news for Bitcoin-assuming Trump stays true to his word.

The current Biden administration has not been particularly favourable to the industry. The SEC has provided a lack of clear guidance regarding Bitcoin, causing businesses to hesitate around the asset. They have also been reluctant to work with industry leaders to establish better guidance, and overall, a proactive approach has been lacking.

In the run-up to this election, Trump explicitly said he would end the Democrats' "war on Bitcoin and crypto." He pledged to fire the current chair of the SEC, Gary Gensler, stating that "the rules and regulations should be written by those who love your industry, not hate your industry." Under his administration, he also promised that the US government would continue to hold all of its current Bitcoin holdings. He added, "We want all of the remaining Bitcoin to be made in the USA."

Although Bitcoin is apolitical, this change in administration could pave the way for mainstream adoption. It could also bring in new regulation that is both favourable and necessary for Bitcoin's continued growth, benefiting individuals and institutions alike. With all this in mind, as Bitcoin has now broken its all-time high, it could be heading into price discovery mode and a full-on bull market.

Adding to the bullish sentiment, both the Federal Reserve in the US and the Bank of England in the UK have opted to lower interest rates this week, which is typically positive for risk assets.

More bullish news is coming from the UK. This week, it was revealed that a pension fund has become the first in the country to make an allocation to Bitcoin. The unnamed fund has allocated 3% of its total £50 million portfolio to Bitcoin, following advice from Cartwright, a pension specialist.

According to Sam Roberts, Director of Investment Consulting at Cartwright, this Bitcoin allocation is a strategic move that not only offers diversification but also taps into an asset class with a unique asymmetric risk-return profile. Roberts also revealed that a second, larger UK pension fund is working with Cartwright for a Bitcoin allocation. This fund may just be the first of many as institutions start to take note of the asset.

In other news, companies in Germany are now making moves to test Bitcoin mining as a way to utilise surplus renewable energy that would otherwise go to waste. Renewable energy sources like wind and solar often generate surplus energy that isn't needed by the grid and can't be stored due to insufficient capacity.

Following the success of similar projects in the US and Finland, Deutsche Telekom subsidiary MMS and Bankhaus Metzler are piloting a Bitcoin mining project in Germany to repurpose this excess energy. Bitcoin mining in this way stabilises operations by turning surplus power into a profitable venture.

The German government recently sold off its entire 50,000 Bitcoin holding, once worth around $3.5 billion. Despite this, it's positive to see other Bitcoin ventures still taking place across the nation, experimenting with this new technology.

Some less positive news comes from social media platform Reddit, which has sold off most of its crypto portfolio-mainly Bitcoin and Ethereum. In a quarterly filing on 30th September, Reddit reported the sale, with proceeds amounting to $6.9 million. The filing explained that the cryptocurrencies were originally purchased using excess cash reserves for treasury purposes. However, Reddit cited concerns regarding volatility, exchange risk, and custody solutions as reasons for the sale. While Reddit has not ruled out further investment in the future, it stated that any future cryptocurrency investments would require approval from its board of directors.

Finally, for our last story this week: US Bitcoin ETFs have reached another mammoth milestone, accumulating over half the value held within the gold ETF equivalent. Since launching earlier this year in January, Bitcoin ETFs have grown to $70 billion in total net assets, while US-listed gold ETFs stand at around $137 billion.

To put this into perspective, in just 10 months, the spot Bitcoin ETFs have amassed over 50% of the assets held by gold ETFs, which have been around for 20 years. Bitcoin is often compared to gold due to its scarcity properties and use as a store of value. However, Bitcoin has the advantage of being digital, making it transportable, easy to store, more divisible, instantly verifiable, and resistant to corruption, among other benefits.

Thanks to these properties, Bitcoin has emerged as the best-performing asset of 2024, climbing 65% year to date. Meanwhile, gold, despite having a strong year, is up just 16%. The demand for these record-breaking ETFs is astonishing, with daily inflows ranging from $192 million to as much as $893 million.