Bitcoin Surges on Trump’s Re-Election: Is it Time to Buy?

Donald Trump’s recent election win has sent Bitcoin soaring past $75,000, marking a dramatic shift in political and market sentiment. Trump’s pro-Bitcoin stance—an exciting contrast to the previous administration’s cautious approach—has fuelled optimism across the crypto landscape. Many now see this as a pivotal moment for crypto growth, regulatory reform, and renewed investor confidence in digital assets. With Bitcoin at record highs and momentum building, one question looms large:

Is this the perfect time to hop on Bitcoin’s ride to $100,000?

Throughout his campaign, Trump actively championed Bitcoin, even proposing a ‘Bitcoin reserve’ to position the US as a global leader in crypto. His commitment to replace SEC Chair Gary Gensler, often seen as a regulatory hurdle, signals a potentially more favourable environment for crypto innovation. This shift could attract traditional investors, allowing more capital to flow into digital assets with fewer barriers. Trump’s focus on strengthening US-based Bitcoin mining also hints at enhanced network stability and reduced dependence on foreign mining hubs.

Analysts see this Bitcoin rally as possibly just the beginning, with some forecasting it could breach $100,000. After consolidating and dipping to $49,202 in August, Bitcoin has since resumed its upward trend, breaking through prior consolidation highs and setting a new all-time high this week. Bitcoin’s next major test will likely be the $80,000 resistance, with a strong breakout above this level potentially pushing it closer to $100,000.

For those interested in crypto exposure without extreme volatility, the CRYP ETF on the ASX offers a diversified entry point. After falling 90 per cent from its IPO listing, the ETF has found support around $1.36 and is trending upward, with the next major resistance around $7. A break above this level could see a rise back up to the all-time high of around $12.

What were the best and worst-performing sectors last week?

The best-performing sectors included Information Technology, up 5.83 per cent, followed by Industrials, up 3.67 per cent and Financials, up 3.59 per cent. The worst-performing sectors included Real Estate, down 1.38 per cent, followed by Energy, down 0.61 per cent and Materials, up 0.47 per cent.

The best performing stocks in the ASX top 100 included Computershare, up 9.88 per cent, followed by Bluescope Steel, up 8.27 per cent and Seven Group Holdings, up 7.38 per cent. The worst-performing stocks included A2 Milk, down 7.53 per cent, followed by Mineral Resources, down 5.27 per cent, and Evolution Mining, down 4.87 per cent.

What's next for the Australian stock market?

Last week, buyers returned with renewed energy, pushing the All Ordinaries Index up by over two per cent—a clear signal that the bull market remains strong. Reinforcing this trend, buyers have consistently stepped in since November 2023, limiting selling pressure to no more than two consecutive weeks before the market turns to trade back up.

While this election was primed to trigger wild swings in price, we didn’t experience this. Instead, the S&P 500 surged by over two and a half per cent in a single day following the election, while the Australian market remained relatively steady. While the upside movement was modest, the positive takeaway is the lack of significant downside volatility, underscoring market confidence in the current uptrend.

The mining sector, in particular, has seen renewed buying interest. Following Donald Trump’s post-election remarks on continuing support for fossil fuels—referring to them as ‘liquid gold’—confidence in this sector has been reignited. This endorsement is welcome news for some of Australia’s largest miners, including BHP, Rio Tinto, South32, and Oz Minerals, all of which have a substantial US presence. This boost in sentiment provides the assurance these companies need to propel growth in the sector.

Moving forward, I expect the All Ordinaries Index to test the current all-time high of 8,654 points. If sellers reassert themselves and push the index below the low of 8,323 that occurred the week ending 1 November, it will be necessary to reassess the short-term direction over the coming weeks. Regardless of any short-term movement, with election uncertainties behind us and buyer momentum rising, now is the perfect time to take action and implement your investment plans.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the bestselling and award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online.