Bitcoin Nears All-Time High Of $80K As Trump’s Pro-Crypto Stance Boosts Market Confidence

Bitcoin is nearing the $80,000 mark for the first time, driven by President-elect Donald Trump's support for digital assets and the potential for a Congress with pro-crypto lawmakers.

The cryptocurrency surged by as much as 4.3%, reaching a historic high of $79,771 on Sunday, and remained close to $79,000 as of 2:05 p.m. in Singapore.

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According to Bloomberg, smaller cryptocurrencies, such as Cardano and the popular meme token Dogecoin, also saw gains.

Trump had pledged during his campaign to position the US as a leader in the digital-asset sector, including creating a strategic Bitcoin reserve and appointing regulators who favour digital assets. Following his victory on Tuesday, Trump emerged in a stronger position than anticipated, with his Republican Party securing control of the Senate and edging toward a narrow majority in the House.

"With the dust from Trump's victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that's what we're seeing now," said Le Shi, Hong Kong managing director at market-making firm Auros.

Bitcoin has gained about 90% in 2024 so far, driven by strong demand for US exchange-traded funds and interest rate cuts by the Federal Reserve. The rise of the largest digital currency, which has hit new records following the US election, outpaces the returns from traditional investments such as stocks and gold.

The ETFs, particularly BlackRock Inc.'s $35 billion iShares Bitcoin Trust, saw a record daily net inflow of nearly $1.4 billion on Thursday, according to Bloomberg data.

The day before, the iShares ETF's trading volume reached an all-time high - clear indicators of how Trump's win is transforming the crypto landscape.

Trump's position contrasts sharply with the crackdown on digital assets under President Joe Biden. Securities and Exchange Commission Chair Gary Gensler has repeatedly described the sector as rife with fraud and misconduct. The agency tightened its oversight of crypto after a market collapse in 2022, which included the downfall of Sam Bankman-Fried's fraudulent FTX exchange.

Digital-asset firms and executives spent significantly during the US election campaign to back candidates seen as favourable to their cause.

"Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely," wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.