Bitcoin surged to a record high of over $81,000 on Monday, driven by optimism that cryptocurrencies will thrive in a favorable regulatory environment following Donald Trump’s election as U.S. president, along with pro-crypto candidates winning seats in Congress. The world’s largest and most recognized cryptocurrency has more than doubled from this year’s low of $38,505, recently reaching $81,572 after briefly touching a peak of $81,899.
During his campaign, Trump expressed support for digital assets, vowing to make the United States the “crypto capital of the planet” and to create a national stockpile of Bitcoin. While other so-called “Trump trades,” including U.S. stocks and short-selling bonds, have lost some momentum post-election, cryptocurrencies continue to gain.
Matt Simpson, a senior market analyst at City Index, commented, “Bitcoin’s Trump-pump is alive and well… With Republicans poised to take control of the House, the crypto community seems to be betting on digital currency deregulation.” Although Simpson cautioned that Trump’s immediate focus might be elsewhere, crypto investors anticipate a reduction in the heightened scrutiny previously imposed by U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has indicated he plans to dismiss.
The cryptocurrency industry has spent over $119 million supporting pro-crypto congressional candidates, and its efforts have largely paid off. In Ohio, Senate Banking Committee Chair Sherrod Brown, one of the industry’s biggest critics, was defeated, while pro-crypto candidates from both the Democratic and Republican parties succeeded in Michigan, West Virginia, Indiana, Alabama, and North Carolina.
In September, Trump also revealed a new crypto business called World Liberty Financial. Although details about this venture are limited, investors view Trump’s personal involvement in the cryptocurrency sector as a positive indicator. Billionaire Elon Musk, a prominent Trump supporter, is also an advocate for cryptocurrencies. Eric Trump, one of the president-elect’s sons and executive vice president of The Trump Organization, is scheduled to be a keynote speaker at a bitcoin conference in Abu Dhabi next month, according to the event organizers.
Overall, the gains in cryptocurrency have been widespread. Ether rose above $3,200 for the first time in over three months on Monday and was last priced at $3,192. Dogecoin, an alternative cryptocurrency that began as a satirical take on the 2013 crypto frenzy, is currently at a three-year high.