Record-breaking Bitcoin nears $90,000 following Trump victory

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Record-breaking Bitcoin nears $90,000 following Trump victory

Bitcoin is riding a wave of unprecedented growth following the election of Donald Trump, with its price soaring to nearly $90,000.

This remarkable rally is fueled by expectations of a crypto-friendly environment under the new administration.

Since the election results were announced, Bitcoin has been one of the market’s most notable gainers.

The world’s largest cryptocurrency reached a high of $89,637 in Asian trading, representing a surge of over 25% since November 5th.

This meteoric rise reflects a growing optimism about the future of crypto under Trump’s leadership.

The ‘Trump trade’: a boost for crypto and related stocks

Bitcoin’s surge mirrors the impressive gains seen in Elon Musk’s Tesla, which has climbed nearly 40% since the election.

Investors anticipate that companies and sectors aligned with Trump’s interests will thrive during his presidency.

“Obviously (it’s) a clear Trump trade as he is so supportive of the industry,” Nick Twidale, chief market analyst at ATFX Global in Sydney, told Reuters.

“This can only mean more demand both for crypto stocks as well as the currencies themselves.” Twidale added, “The fact that bitcoin was trading near all-time highs when the election result came through meant that it had clean sky above.”

Donald Trump’s pro-crypto vision

During his campaign, Trump expressed strong support for digital assets, pledging to make the United States the “crypto capital of the planet” and to establish a national Bitcoin reserve.

While the specifics of these plans remain unclear, the prospect of government endorsement has ignited a speculative frenzy in crypto mining and trading stocks.

“I think it increases the chances that other nation states buy bitcoin in a bid to front run the US,”a Reuters report quoted Matthew Dibb, chief investment officer at Astronaut Capital.

He also noted the potential impact on US-listed Bitcoin miners, stating, “Additionally, I think it would be a crazy catalyst… given possibilities of such entities getting nationalised.”

Crypto market euphoria

The post-election euphoria has extended across the entire crypto landscape, with smaller tokens like Ether and even Dogecoin experiencing significant gains.

Crypto miner Riot Platforms saw a nearly 17% jump on Wall Street overnight, with further gains in after-hours trading.

Other mining companies, including MARA Holdings and CleanSpark, also experienced substantial increases.

Furthermore, MicroStrategy, a software company and prominent Bitcoin investor, disclosed a $2 billion Bitcoin purchase between October 31st and November 10th.

The company’s shares rose by 26% and continued to climb in after-hours trading.

A shift in regulatory landscape: from scrutiny to support

Crypto investors anticipate a more favorable regulatory environment under the Trump administration, with the expected replacement of SEC Chair Gary Gensler.

Trump’s unveiling of his own crypto venture, World Liberty Financial, further underscores his commitment to the industry.

“What we’re seeing isn’t just a price milestone,” commented Justin D’Anethan, head of Asia-Pacific business development at Keyrock.

“It’s a signal that the market is warming to the idea of bitcoin as a more stable, even politically favoured, asset.”

This shift in sentiment suggests a bright future for the crypto market under Trump’s presidency.

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