Bitcoin broke through the $90,000 mark on Wednesday, continuing its post-election rally amid growing expectations that a potential Trump presidency will be favorable for cryptocurrencies.
The world’s largest cryptocurrency reached a record high of $93,158, up 5.49% on the day, marking a 32% increase since the November 5 election.
Ethereum, Bitcoin’s smaller peer, also saw significant gains, rising 37% since Election Day.
Meanwhile, Dogecoin, the highly volatile token that has garnered attention due to support from billionaire Elon Musk, continued to experience notable gains, further fueled by his endorsement and the broader optimism surrounding crypto assets.
Trump backed digital assets in campaign, sparking speculative surge in crypto mining and trading
During his campaign, Donald Trump voiced strong support for digital assets, pledging to make the U.S. the “crypto capital of the planet” and build a national bitcoin stockpile, according to Reuters.
While the details and timeline remain uncertain, his statements fueled a wave of speculation, driving up crypto mining and trading stocks.
“Key areas to monitor include potential regulatory changes, increased institutional participation, and a rise in M&A activity,” said Carl Szantyr, managing partner of digital asset hedge fund Blockstone Capital.
“The new political landscape may bring clearer regulations for crypto assets and could prompt strategic developments, such as a national bitcoin reserve and growth in the mining sector.”
MicroStrategy, the software company and major Bitcoin investor, revealed it had spent approximately $2 billion purchasing Bitcoin between October 31 and November 10. This substantial acquisition helped drive its stock price to a record high on Tuesday. The company’s aggressive Bitcoin strategy continues to attract attention, as it has now amassed a significant position in the cryptocurrency.
In the broader crypto market, investors are anticipating a reduction in regulatory scrutiny, particularly from the U.S. Securities and Exchange Commission, which has been more active under the Biden administration.
“President Trump’s re-election would allow him to appoint a new chair of the SEC, an agency that has arguably been stifling the crypto industry via ongoing legal action and monetary penalties over the past ~3 years,” JPMorgan researchers said in a note Tuesday.
