Bitcoin reached a new record high of over $80,000 on Sunday, continuing a surge that began in the run-up to last Tuesday’s U.S. presidential election. The world’s largest cryptocurrency climbed sharply on election night as it became clear Donald Trump would secure the presidency, and has since continued its rally, with crypto investors viewing Trump’s win as a bullish development for digital assets.
This record-breaking rise has Bitcoin up 80% this year, far outpacing the S&P 500’s impressive 25.7% gain. Bitcoin briefly hit the $80,000 milestone before stabilizing just below it Sunday morning. The rally reflects a shift in Trump’s stance on crypto; after once dismissing Bitcoin as “based on thin air,” Trump has recently embraced the industry.
Trump’s Newfound Support for Crypto:
In September, Trump and his children launched a crypto venture, World Liberty Financial, a business aimed at expanding the reach of cryptocurrencies. "It’s very young and very growing," Trump said at the launch event, expressing belief in crypto’s potential.
This pro-crypto stance marks a stark contrast to the Biden administration, which took a skeptical approach. SEC Chairman Gary Gensler led an aggressive crackdown on the industry, calling crypto “ripe with fraud, scams, and abuses.” Under his leadership, the SEC pursued numerous crypto companies, tightening regulations and collaborating with other agencies to prosecute high-profile cases, such as that of FTX founder Sam Bankman-Fried.
Though Gensler eventually approved a Bitcoin exchange-traded fund (ETF), his regulatory approach faced criticism for its perceived hostility toward the industry. The recent election, however, brings a notable shift in the U.S. regulatory climate. Trump has not only embraced crypto but has proposed establishing a national Bitcoin reserve, likening it to the country’s strategic petroleum reserve as a security measure.
Market Reactions and Dogecoin Surge:
Elon Musk, a prominent Trump supporter and longtime crypto advocate, has also fueled optimism in the market. Musk’s preferred cryptocurrency, Dogecoin, rose over 20% on Sunday, continuing a week-long rally alongside Bitcoin’s rise.
Trump’s support of crypto has sparked hope among investors that his administration will foster innovation and establish the U.S. as a global leader in digital assets. His proposal to "mine, mint, and make" crypto in America underscores his commitment to driving domestic growth in the industry.
As Trump prepares for his return to office in January 2025, the crypto community is hopeful that a more favorable regulatory environment will drive long-term growth for digital assets. Bitcoin’s latest surge to $80,000 suggests investors are optimistic about what the future holds under Trump’s pro-crypto leadership.
