Bitcoin (BTC) surged past $82,000 for the first time, helped by President-elect Donald Trump’s support for digital assets and expectations that pro-crypto lawmakers could enter Congress.
Trump’s victory in Arizona, which swept seven key U.S. battleground states, sparked celebrations in the digital asset industry, which invested more than $100 million in supporting various cryptocurrency-friendly candidates.
As of press time, Bitcoin reached $82,254.01.
The bullish sentiment also drove gains in other smaller coins, including Dogecoin, a popular cryptocurrency promoted by Elon Musk, a Trump supporter and the world’s richest man.
Le Shi, managing director of Hong Kong market maker Auros, said, “As the dust settles from Trump's victory, the market's rise is inevitable because people believe Trump supports cryptocurrencies, which is exactly what we are seeing now.”
Trump's 'good news'
During his campaign, Trump promised to position the U.S. at the center of the digital asset industry, including creating a Bitcoin strategic reserve and appointing regulators who are enthusiastic about digital assets. Celebrating traders are currently less concerned about issues such as the speed of implementation or the feasibility of a strategic reserve.
He has promoted a broad agenda of domestic economic growth, tax cuts, and reducing bureaucratic red tape, fueling a buying frenzy in stocks, credit, and cryptocurrencies. The S&P 500 index reached its 50th all-time high for the year last week.
Bitcoin has risen about 94% this year, benefiting from strong demand for exchange-traded funds dedicated to it and interest rate cuts by the Federal Reserve. The token's gains have outpaced returns from investments like stocks and gold, also setting new records since last Tuesday's U.S. election.
According to data compiled by Bloomberg, the iShares Bitcoin Trust Fund, managed by BlackRock and with a market value of $35 billion, set a new daily net inflow record of nearly $1.4 billion on Thursday. The day before, trading volume for the iShares ETF also hit a historical peak, all of which indicates that Trump's victory is reshaping the cryptocurrency market.
Institutional demand
Before the election, we believed that many institutional market funds exited due to risk control, but after Trump's victory, they re-entered, bringing tremendous buying pressure—this trend may continue for some time,” said Richard Galvin, founder of crypto investment firm DACM. Trump's stance on digital assets contrasts sharply with that of current President Biden.
Meanwhile, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has repeatedly pointed out that the industry is rife with fraud and misconduct. Since the market crash in 2022 and the bankruptcy of Sam Bankman-Fried's FTX exchange, the SEC has intensified its regulation of cryptocurrencies. During the campaign, digital asset companies invested heavily to support candidates friendly to their interests. Against this backdrop, Trump has shifted his stance to become a supporter of an industry he once called a scam. 'Trump's promise of supportive regulation, combined with comprehensive victories in the House and Senate, makes the passage of cryptocurrency legislation more likely,' wrote Noelle Acheson, author of the newsletter Crypto Is Macro Now.
