TL;DR:
- Bitcoin surged past $81,000 after Donald Trump’s election, driven by hopes of cryptocurrency deregulation.
- Trump promised to make the U.S. the “crypto capital” and plans to fire SEC Chair Gary Gensler.
- The crypto industry spent over $119 million backing pro-crypto candidates, securing key wins in Congress.
- Ether and Dogecoin also saw significant gains, with Trump ally Elon Musk further supporting the crypto rally.
Bitcoin has reached an unprecedented milestone, soaring above $81,000 on Monday, November 11, 2024, as the cryptocurrency market rallies on the back of Donald Trump’s election as U.S. president. This surge comes amid growing investor optimism that the new administration will create a favorable regulatory environment for digital assets. Trump’s pro-crypto stance and promises to turn the United States into the “crypto capital of the planet” have sparked significant momentum in the market.
The world’s largest cryptocurrency, Bitcoin, has more than doubled from its yearly low of $38,505, hitting a record high of $81,899 before settling at $81,572. This marks a major leap for Bitcoin and signals strong confidence in the cryptocurrency sector as Trump prepares to take office.
Other cryptocurrencies have also seen substantial gains. Ether, the second-largest cryptocurrency by market capitalization, climbed above $3,200 for the first time in three months and was last trading at $3,192. Dogecoin, a meme-based cryptocurrency popularized by billionaire Elon Musk, hit a three-year high as well. Musk, a close ally of Trump and vocal supporter of digital currencies, has played a significant role in boosting Dogecoin’s visibility and value.
The rally in cryptocurrencies is largely driven by expectations that Trump’s administration will roll back regulatory scrutiny that has weighed on the industry in recent years. During his campaign, Trump repeatedly criticized U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler for his tough stance on cryptocurrencies and vowed to remove him from office. Gensler has been at the forefront of enforcing strict regulations on digital assets since his appointment by President Joe Biden in 2021.
Matt Simpson, a senior market analyst at City Index, noted that Bitcoin’s rise is closely tied to political developments: “Bitcoin’s Trump-pump is alive and well… with Republicans on the cusp of taking control of Congress to confirm a red wave.” Simpson added that while Trump’s immediate priorities may lie elsewhere, crypto investors are betting heavily on deregulation under his administration.
The cryptocurrency industry has been actively backing pro-crypto candidates in Congress, spending over $119 million during the election cycle. Their efforts appear to have paid off with several key victories. In Ohio, Sherrod Brown—one of crypto’s most outspoken critics and Chair of the Senate Banking Committee—was defeated. Additionally, pro-crypto candidates from both Republican and Democratic parties won seats in Michigan, West Virginia, Indiana, Alabama, and North Carolina.
Trump has also signaled his personal interest in the sector with the launch of World Liberty Financial in September 2024. While details about this new venture remain scarce, investors have interpreted it as a positive sign for future crypto-friendly policies.
Eric Trump, one of Donald Trump’s sons and executive vice president of The Trump Organization, is set to be a keynote speaker at an upcoming Bitcoin conference in Abu Dhabi next month. His involvement further cements the Trump family’s ties to the burgeoning cryptocurrency industry.
This surge in Bitcoin and other digital assets comes amid broader market trends following Trump’s election victory. While other so-called “Trump trades”—including U.S. stocks and shorting bonds—have lost some steam since Election Day, cryptocurrencies continue to rise without pause.
As Trump prepares to take office with a Republican-controlled Congress likely behind him, investors are anticipating sweeping changes that could reshape not only U.S. financial regulation but also global attitudes toward digital currencies. With promises of deregulation and tax cuts fueling optimism across various sectors, cryptocurrencies appear poised for continued growth under Trump’s leadership.
The coming months will be critical for determining how far-reaching these changes will be and whether Bitcoin’s meteoric rise can be sustained in this new political climate.
Source: Reuters
