Last week was indeed eventful, due to the fact that Donald Trump was reelected as President of the United States. Wednesday—when Trump’s victory was confirmed—stands among the top three most significant days in the history of digital assets. It is simply beyond dispute.

In our Crypto Moves #51 note on Thursday, we delved into the immediate impacts of Trump’s win. While we strongly endorsed the victory as an extremely powerful catalyst for crypto, we also pointed out that prices last week seemed to climb too high, too quickly. In our assessment, this spike was mainly driven by the derivatives market rather than spot trading, making the rally appear extremely speculative. There was simply a prevailing sentiment that prices could only go higher. This is never positive.

We were badly mistaken. Contrary to our expectations, the market’s enthusiasm did not cool off after Thursday—it only intensified. Prices did, in fact, continue to soar after our Thursday publication. Today, Bitcoin reached a new all-time high of nearly $85,000.

Despite this momentum, we remain cautious about the speculative nature of the current market, as highlighted in the first chart. Yet, we also recognize that markets can remain irrational longer than one can stay solvent. Betting against this upward trend carries significant risks, as the overall trend continues to point upward – as we have also argued for months – even though there may be sudden, sharp declines in Bitcoin and the broader crypto market.