Bitcoin’s price skyrocketed past $81,000 for the first time, mainly due to Donald Trump’s support for digital currencies and the pro-crypto lawmakers in Congress.
After Trump’s win in seven US battleground states and his ascension to the presidency, Bitcoin surged 6.1% and reached $81,497 early in Asia on Monday, marking an all-time high. Other coins, such as Dogecoin, also saw significant increases.
Trump, who once labeled digital-asset companies as scams, is now a major crypto supporter. He promised during his campaign to position the U.S. at the center of the digital-asset industry, create a Bitcoin stockpile, appoint crypto-friendly regulators, and ensure that Congress passes crypto-friendly bills.
The digital-asset industry had spent over $100 million supporting crypto-friendly candidates. This shift is likely due to the contrast with President Joe Biden’s crackdown on digital assets, citing concerns over fraud and misconduct, especially after Sam Bankman-Fried’s fraudulent FTX exchange, which contributed to the 2022 market crash.
In 2024, Bitcoin has increased by about 93% so far, mainly due to strong demand for dedicated US exchange-traded funds (ETFs) and interest rate cuts by the Federal Reserve. The cryptocurrency is now outpacing traditional investments like stocks and gold.
Richard Galvin, founder of DACM, commented that after Trump’s win, many institutional investors who had been cautious are now buying Bitcoin, creating more demand. The iShares Bitcoin Trust, an ETF created by BlackRock, reported a record daily net inflow of almost $1.4 billion, signaling how Trump’s victory is reshaping the crypto market.
