Bitcoin hits record high above $81,000 amid hopes of crypto-friendly policies under Trump
SINGAPORE – Bitcoin surged to a record high above $81,000 on Monday on expectations that cryptocurrencies will thrive in a favourable regulatory environment following the election of Donald Trump as U.S. president and pro-crypto candidates to Congress.
The world’s most well-known cryptocurrency, Bitcoin (BTC), has more than doubled from this year’s low of $38,505. It recently reached $81,572, after earlier touching an all-time high of $81,899.
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.
Other so-called ‘Trump trades’—from U.S. stocks to shorting bonds—have lost some steam since the election, but cryptocurrencies haven’t paused for breath.
“Bitcoin’s Trump-pump is alive and well… with Republicans on the cusp of taking the house to confirm a red wave in Congress, it seems the crypto crowd is betting on digital currency deregulation,” said Matt Simpson, senior market analyst at City Index, referring to Republican control of both houses.
While Simpson cautioned that Trump’s immediate priorities may focus elsewhere, cryptocurrency investors are hopeful that regulatory scrutiny on the crypto industry might be eased.
The industry spent more than $119 million backing pro-crypto congressional candidates and has, by and large, succeeded.
The industry scored a win as Senate Banking Committee Chair Sherrod Brown, one of its biggest opponents, was ousted in Ohio. Meanwhile, pro-crypto candidates from both major parties won key races in Michigan, West Virginia, Indiana, Alabama, and North Carolina.
Trump’s involvement in the crypto space grew with the launch of his new venture, World Liberty Financial, yet details remain limited. Moreover, his personal interest, along with the backing of allies like billionaire Elon Musk, constitutes a positive sign for the industry.
Gains in cryptocurrencies have been broad. Ether ETH= rose above $3,200 for the first time in over three months on Monday and was last fetching $3,192. Dogecoin DOGE=KRKN, an alternative cryptocurrency that began as a satirical critique of the 2013 crypto frenzy, was at a three-year high.
