Fueled by Trump’s support for digital assets and the prospect of pro-cryptocurrency lawmakers in Congress, Bitcoin broke the $80,000 mark for the first time just this past Sunday.
Trump announced his victory in Arizona, marking a sweep of seven battleground states in the U.S. His decisive victory in the presidential election sparked a frenzy in the cryptocurrency industry, which spent over $100 million supporting a range of cryptocurrency-friendly candidates.
Le Shi, managing director of the market-making firm Auros in Hong Kong, said, “Given that people believe Trump supports cryptocurrencies, it was only a matter of time before some form of rally happened, which is what we are seeing now.”
Bitcoin surged 4.7% last Sunday, reaching an unprecedented $80,092 before retreating. Some cryptocurrency analysts see $100,000 as the 'next stop', believing it could be reached before the end of the year. At the time of writing, Bitcoin continues to set new highs, rising to $81,476 per coin. Trump vowed during his campaign to make the U.S. the center of the digital asset industry, including establishing a Bitcoin strategic reserve and appointing regulators interested in digital assets.
With strong demand for exchange-traded funds (ETFs) in the U.S. and the Federal Reserve's interest rate cuts, Bitcoin has risen approximately 91% so far in 2024. The largest digital token's gains have set records after the U.S. election votes, surpassing returns from U.S. stocks and gold.
According to data compiled by Bloomberg, an ETF backed by BlackRock's $35 billion iShares Bitcoin Trust set a record last Thursday for nearly $1.4 billion in daily net inflows. The day before, trading volume for iShares ETFs surged to an all-time high— all signs indicating that Trump's victory is reshaping the cryptocurrency landscape.
Trump's stance contrasts sharply with Biden's crackdown on digital assets. Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has repeatedly called the industry rife with fraud and misconduct. Following the market crash in 2022 and a series of bankruptcies (notably the collapse of Sam Bankman-Fried's FTX exchange), the agency has taken a tough stance on cryptocurrencies.
Digital asset companies and executives have spent heavily during the U.S. election to promote candidates they believe will benefit their interests.
“Trump promised to support regulation, and the 'sweep' in the House and Senate makes it more likely for cryptocurrency legislation to pass,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.
