Bitcoin surpassed USD 84,000 for the first time after the confirmation of Donald Trump‘s victory in the United States presidential elections. The world’s largest cryptocurrency hit a high of $84,839.73 on Monday, recording a significant rise from its yearly low of $38,505. Over the weekend, Bitcoin rose as much as 6.1%, boosted by Trump’s victory in several key states that cemented his return to the White House.
The digital asset market immediately celebrated the victory of the Republican candidate. During his campaign, Trump emphasized his support for cryptocurrencies and promised to turn the United States into the “crypto capital of the planet.” In addition, he assured that his administration will create a national reserve of the cryptocurrency as part of its strategy to boost economic growth.
The impact of the election result was not limited to Bitcoin. Other cryptocurrencies, such as ether, also recorded significant increases. Ether, the second largest cryptocurrency, surpassed $3,200, a level it had not reached in more than three months. At the same time, Dogecoin, boosted by backing from entrepreneur Elon Musk, hit three-year highs. The support of Musk, a well-known supporter of Dogecoin, also contributed to the increase in its value.
Industry experts interpreted Trump’s victory as a positive sign for the future of cryptocurrencies in the country. According to Matt Simpson, an analyst at City Index, “Bitcoin’s momentum thanks to Trump is in good health.” Simpson added that although the new president’s initial priorities could be focused on other issues, crypto investors hope for an end to the policy of strict regulation led by the Securities and Exchange Commission (SEC) under the Joe Biden administration.
Trump not only promised to support the sector, but also to make changes to the regulatory structure. During his campaign, he assured that he will fire the president of the SEC, Gary Gensler, who has been critical of cryptocurrencies, calling them a market full of fraud. The SEC’s regulatory tightening during the Biden administration, especially after the collapse of platforms such as FTX, generated discontent among digital asset investors.
On the other hand, the crypto industry allocated more than $119 million to support pro-crypto candidates in Congress, many of whom won seats in the House of Representatives and the Senate. This strategy, supported by Trump, reinforces the expectation that the United States will become a friendlier environment for digital assets. The Republican victory in Congress would also facilitate the approval of new legislation favorable to the sector.
The excitement over Trump’s election was not limited to Bitcoin and cryptocurrencies. The euphoria was also reflected in the stock and exchange-traded fund (ETF) markets. BlackRock, through its iShares Bitcoin Trust, posted a record net daily flow of nearly $1.4 billion last Thursday, while ETF trading volume hit an all-time high a day earlier.
According to Richard Galvin, founder of the investment firm DACM, many institutional investors had chosen to reduce their exposure to the crypto market before the elections. However, after Trump’s victory, several of them re-entered the market, generating buying pressure that drove prices up even further.
Trump’s approach contrasts with the previous administration, which tightened regulation in the crypto sector. In 2022, crashes on platforms like FTX led the SEC to redouble its scrutiny. However, analysts maintain that, under Trump’s leadership, the industry could regain its dynamism, especially if deregulation promises are realized.
Despite investor enthusiasm, some observers remain cautious about Trump’s ability to deliver on all of his promises in the near term. However, the cryptocurrency sector continues to show significant optimism regarding the upcoming regulatory changes that could be implemented.
The recent rally in Bitcoin, which has accumulated an increase of 94% so far this year, has also been helped by the growth in demand for dedicated ETFs and reductions in interest rates by the Federal Reserve. This increase far exceeds the returns of other traditional investments, such as stocks and gold.
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