Bitcoin surges as Trump-fuelled rally continues
Bitcoin has climbed above $82,000 as its record-breaking run continued in the wake of Donald Trump’s re-election as President.
The cryptocurrency hit a record high of $82,313 (£63,900) earlier this morning. It has since given up some of its gains, but was still trading 2.1 per cent higher.
Since Trump’s election last week Bitcoin prices have jumped around 20 per cent. The rally has been fuelled by hopes that a second Trump presidency could presage a new era for crypto.
“Promises to deregulate crypto after three years of Gensler leading the Biden crackdown means the market is buoyant,” Finalto’s Neil Wilson said.
Other cryptocurrencies, such as Ethereum and Solana, have also made big gains since last week’s election.
Although Trump had previously been critical of cryptocurrencies, he started courting the industry in the run-up to the election campaign. This has fuelled expectations that he will create a more supportive regulatory environment.
“He’s made an about turn on supporting the industry and is now vowing to turn the US into the crypto capital of the world,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented.
“Bitcoin speculators are betting on a more clement regulatory environment and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand,” she added.
Trump is expected to appoint more crypto-friendly regulators and create a strategic Bitcoin reserve. The Republicans are also on the verge of taking control of the House of Representatives, which would give them power to enact major legislative changes.
Standard Chartered said that this would allow the new administration to “push through supportive politics for digital assets soon after taking office”.