Bitcoin has breached the $82,000 mark on Binance, marking a significant gain of 17% since Donald Trump publicly announced his victory in the last US presidential election on Wednesday, November 6. Last weekend, the BTC price achieved a infrequent “weekend pump”, rising by over 6%. While there are several reasons for this move, one clear main reason stands out: Donald Trump’s victory.

#1 Bitcoin “trump pump”

Donald Trump’s victory significantly improved the sentiment on the Bitcoin market, primarily due to the promises made in the campaign and the legislative initiatives supporting him. During his election campaign, Trump pledged to create a national Bitcoin reserve, retaining ownership of 208,000 Bitcoins confiscated over the years in various law enforcement actions.

Senator Cynthia Lummis, a Republican from Wyoming often called the “Bitcoin senator” for her forceful support, has introduced the Bitcoin Act. The goal of this legislation is to acquire 1 million BTC within five years.

As a Bitcoinista reportedBitcoin reserve could become a reality quite quickly. BTC Inc. David Bailey, who is a key advisor to Trump on Bitcoin, recently said this could be done within the “first 100 days” of Trump’s term.

In lightweight of this, cryptocurrency research company Matrixport I’m writing in its latest note to investors: “With Trump expected to transform U.S. regulatory policy into a more pro-crypto environment, the momentum appears challenging to contain. With its inauguration scheduled for January 20, 2025, the market has a few weeks to sustain this growth.

Arthur Hayes, founder of BitMEX, it happened again this optimism about X: “Some of you don’t believe Trump is going to dump dollars and print money. BTC disagrees. Here is the leading Bitcoin compared to my fresh money supply indicator US Bank Credit. The market says, listen.”

Renowned cryptocurrency analyst MacroScope (@MacroScope17) next developed on the implications for institutional investors: “It is very important for BTC investors to understand how the game has changed since the election. In the institutional world, investments are based on having a thesis […] It’s hard to overstate how much the BTC thesis has changed now in terms of the politics/political element.”

#2 Rumors of nation-state adoption of Bitcoin

Strategic plans to create a national Bitcoin reserve under the Trump administration have significant geopolitical significance, potentially sparking a global race to accumulate Bitcoin reserves. David Bailey noted, “The Bitcoin space race has begun,” noting that “game theory is coming true faster than anyone could have expected.”

Mike Alfred, founder and managing partner of Alpine Fox LP, common his excitement in X: “I just got a call out of the blue. It was someone important and they said that someone huge was buying Bitcoins tonight. I almost couldn’t believe it when they said the name. Wild. We will go much higher.”

Bailey commented on November 10: “There is at least one nation state that is actively purchasing Bitcoin and is currently among the top five holders of Bitcoin. Hopefully we’ll hear from them soon.” His statement is accompanied by a meme suggesting certainty rather than speculation. He added on size: “Top 5 largest Bitcoin holders among all users.”

There is at least one nation state that is actively purchasing Bitcoin and is currently among the top five. Let’s hope we hear about them soon.

— David Bailey🇵🇷 0.85 mm/btc is imperative (@DavidFBailey) November 9, 2024

#3 Low squeeze

A significant miniature squeeze also contributed to Bitcoin’s price surge. Charles Edwards, founder of Capriole Investments, commented on X: “Approximately $1 billion of shorts were squeezed! Go from 76k to 81k from the weekend. dollars. Open interest at the same level as when BTC was quoted at 62,000. dollars. Provided funding continues to stabilize, this will be a very healthy upward move.”

Data from Coinglass confirms this, revealing that $133.15 million in BTC miniature positions were liquidated on Sunday, followed by an additional $33 million on Saturday. This significant liquidation of miniature positions reduced selling pressure, thus fueling further increases in Bitcoin’s price.

#4 The return of retail

The resurgence of retail interest has been another key factor in Bitcoin’s recent surge. Cameron Winklevoss, founder of Gemini, noticed on X: “The way to bitcoin worth 80 thousand. dollars was paved with constant demand for ETFs. No retail FOMO. Little fanfare. People buy ETFs, not sell them. It’s a sticky HODL-like capital. The floor keeps rising. Where are we in the cycle? We just won the coin toss, the rounds haven’t started yet.

Google Trends data supports this narrative, showing a 53% enhance in Bitcoin-related searches since the first weekend of October. On November 10, Bitcoin searches peaked at 95, up from 42 at the end of October. This enhance in search activity suggests increased interest from retailers and a potential influx of fresh investors into the market.

At the time of publication, the price of BTC was $81,259.

Featured image created with DALL.E, chart from TradingView.com