Bitcoin surged to a new all-time high above $82,000 on Monday, driven by optimism that cryptocurrencies will thrive under a more favorable regulatory framework with the election of Donald Trump as U.S. president and a wave of pro-crypto candidates winning seats in Congress.
The world’s most popular cryptocurrency has more than doubled in value from this year’s low of $38,505, recently reaching $81,991 after briefly hitting a peak of $82,413. Trump’s campaign championed the digital asset space, with promises to establish the U.S. as the “crypto capital of the world” and even build a national Bitcoin reserve.
What they have to say about Bitcoin?
“Bitcoin’s Trump boost is still going strong… with Republicans on the verge of taking the House, it looks like the crypto community is banking on deregulation of digital currencies,” said Matt Simpson, Senior Market Analyst at City Index, noting the potential for a Republican-controlled Congress. While Simpson cautioned that Trump’s immediate focus may lie elsewhere, crypto investors are hopeful that the heightened regulatory scrutiny under SEC Chair Gary Gensler—whom Trump has pledged to remove—could soon end.
The cryptocurrency industry invested over $119 million in backing pro-crypto candidates, many of whom secured victories. In Ohio, one of the crypto industry’s biggest Congressional adversaries, Senate Banking Committee Chair Sherrod Brown, was defeated, while pro-crypto candidates from both parties emerged victorious in Michigan, West Virginia, Indiana, Alabama, and North Carolina.
Trump also launched a new crypto venture, World Liberty Financial, in September. While details remain scarce, investors have interpreted his personal involvement in the crypto space as a positive sign. Elon Musk, a close Trump ally, has also been a vocal supporter of digital assets.
Eric Trump, the president-elect’s son and executive vice president of The Trump Organization, is scheduled to be a keynote speaker at a major Bitcoin conference in Abu Dhabi next month, according to event organizers.
Deutsche Bank research analyst Marion Laboure sees the incoming administration as a catalyst for greater regulatory clarity, institutional involvement, and wider mainstream adoption of cryptocurrencies. “Trump’s practical approach signals a shift away from recent regulatory crackdowns,” Laboure said.
In the wake of Trump’s election, cryptocurrency exchange-traded funds (ETFs) have seen substantial inflows. On November 7, Bitcoin ETFs recorded their largest inflows ever, attracting $1.38 billion, according to Citigroup data. “ETF inflows have been the primary driver of Bitcoin’s performance, and we expect this trend to continue,” Citi analysts noted.
Other cryptocurrencies have also seen significant gains. Ether briefly surpassed $3,200 for the first time in over three months, and Dogecoin, which began as a satirical commentary on the 2013 crypto craze, reached its highest point in three years. Laboure further predicts that the Federal Reserve may cut interest rates, providing additional support for the crypto market.
Sourse: Reuters
Article by: Forstarmedia
