Bitcoin surpassed the all-time high of $75,000 following news of former President Donald Trump’s success at the polls on Election Day.
The Republican president-elect sparked investor enthusiasm for cryptocurrencies during his campaign, pledging to make the United States the “crypto capital of the planet.”
Early morning trading saw the digital asset rise by almost eight percent, breaking its previous record set in March. Other cryptocurrencies followed the upward trend; Ether, the world’s second-largest cryptocurrency, also rose 8%, while Dogecoin, famously favored by billionaire Elon Musk, rose 18%.
Trump’s shift in stance on digital currencies during his campaign amplified this growth. Once a crypto-skeptic, Trump has since embraced the industry, proposing a “strategic reserve” of Bitcoin similar to what the United States does with gold.
His campaign accepted cryptocurrency donations, and he courted crypto enthusiasts at a Bitcoin conference in July. This resulted in Trump and his family launching World Liberty Financial, a company dedicated to trading in this space in hopes of amassing $300 million in token sales.
“Bitcoin is the only asset that would still rise if Trump returned to the White House,” said Russ Mould, chief investment officer at AJ Bell.
Following the recent rise, “the market is now speculating on ‘when, not if, it will exceed $100,000,'” he said.
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Why is Bitcoin going up because of Donald Trump?
Optimism surrounding Trump’s pro-crypto stance has energized the digital assets community, which expects more lenient regulations under his administration.
Trump has expressed his intention to replace current SEC Chairman Gary Gensler, who has led a rigorous crackdown on an industry that most governments still struggle to regulate.
A 2023 Pew Research Center survey found that only 17% of U.S. adults have ever purchased cryptocurrency, with the majority being men under 50.
“Tonight, the crypto voter spoke out decisively, across party lines and in key races across the country,” said Brian Armstrong, CEO of Coinbase, one of the largest crypto exchanges -cash.
“Americans care disproportionately about crypto and want clear rules of conduct for digital assets. We look forward to working with the new Congress to make this happen,” he posted on X, formerly known as Twitter name.
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A “light-touch” approach to crypto regulation
Market analysts remain divided on the long-term implications of Trump’s victory for the crypto market.
While some investors see the potential for explosive growth, others warn of the market’s notorious volatility. The space has seen ups and downs throughout the NFT bubble and COVID-19, where Bitcoin was not even worth 10% of what it is currently worth.
“Investors should only get into crypto with money they can be prepared to lose,” said Susannah Streeter, head of currency and markets at Hargreaves Lansdown. “Because we have witnessed these wild fluctuations in the past,” she added.
Many crypto advocates, who view the existing regulatory environment as restrictive, hope that Trump’s presidency could include a “light touch” approach.
She agreed that crypto enthusiasts would prefer to see this as Trump’s presidency takes shape.
“They want a sheen of legitimacy to be brought to crypto, but they don’t want regulations to be so onerous that they stop opportunity and innovation.”
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Will Bitcoin reach $100,000?
Crypto enthusiasts are now wondering if Bitcoin’s momentum could push its value to $100,000. Bitcoin has already gained 77% this year, and given recent developments, investors are becoming more optimistic about digital assets.
“Trump has already declared his love for digital currency and crypto traders now have a new narrative that makes them even more excited about where the price could go,” Mold said.
Until then, Bitcoin’s continued rise depends on whether Trump delivers on his promises to make the United States more crypto-friendly. His most prominent tech supporters, including Musk, who donated $119 million to fund a super PAC aimed at securing his re-election, will likely be there to advise him.
“The American people have given @realDonaldTrump a very clear mandate for change tonight,” he wrote on the social media platform
“America is a nation of builders. Soon you will be free to build.”
This article includes reporting from the Associated Press
