Bitcoin has surged to an all-time high, surpassing $81,000, following the election victory of Donald Trump as President of the United States and his expressed support for digital assets, as reported by Bloomberg. This historic milestone comes at a time when the cryptocurrency has seen an impressive increase of about 93% over the year.
The excitement in the crypto markets is fueled by expectations of a pro-crypto legislative environment under Trump, with potential allies in Congress who favor digital currencies. Factors contributing to Bitcoin's remarkable rise include significant inflows into U.S.-based Bitcoin exchange-traded funds (ETFs), interest rate reductions by the Federal Reserve, and the anticipated influence of a pro-crypto Congress and administration.
As of 9:05 a.m. on November 11, Bitcoin was trading at $81,156.62, marking its second consecutive record high after hitting $80,000 for the first time on November 10. Just days earlier, on November 6, following Trump's election announcement, Bitcoin had reached $75,000, breaking its prior record of $73,797.98 set in March 2024.
Other cryptocurrencies, including the well-known Dogecoin—backed by Elon Musk—have also benefited from the prevailing bullish sentiment in the crypto market. Trump's pre-election statements indicated plans to establish a strategic Bitcoin reserve and appoint regulators who favor digital assets, raising hopes of reduced regulatory burdens for the crypto industry.
One of Trump's first actions as president is expected to be the dismissal of Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), who has been instrumental in the agency's crackdown on cryptocurrencies since his appointment by Joe Biden in 2021. Market analysts suggest that if Trump follows through on deregulating the crypto sector, it could significantly boost Bitcoin prices, potentially reaching $100,000, although the market remains susceptible to volatility.
Trump's broader economic agenda, which includes tax cuts and regulatory rollbacks, has already spurred a rise in various investments since his election victory. With Republicans holding power in both the executive and potentially both legislative chambers, they are positioned to advance Trump's policies and pass favorable legislation for the cryptocurrency market.
The current rally in Bitcoin prices is largely attributed to the anticipation of a supportive Trump administration for cryptocurrencies. Trump has vowed to position the U.S. as the "bitcoin and cryptocurrency capital of the world," and he has suggested appointing prominent figures like Elon Musk to oversee critical audits of government spending.
While Trump had previously labeled cryptocurrencies as a “scam” during his first term, he has since revised his stance during his re-election campaign, even launching a platform for digital currency. In September, Trump announced plans to create a digital currency platform named World Liberty Financial, although its initial launch faced challenges, with only a small portion of its tokens finding buyers.
Zainab Y.
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