Bitcoin hits $80,000 for first time as Trump’s win sparks crypto optimism

Bitcoin is nearing the $80,000 mark for the first time, fueled by President-elect Donald Trump’s positive stance on digital assets and a pro-crypto Congress.

The cryptocurrency surged by 4.3% to an unprecedented $79,771 on Sunday, holding close to $79,000 by 2:05 p.m. in Singapore. Smaller cryptocurrencies like Cardano and Dogecoin also saw gains.

On the campaign trail, Trump pledged to position the US as a leader in the digital asset space, including developing a strategic Bitcoin reserve and appointing regulators with pro-crypto leanings. After Tuesday’s election, his Republican Party now controls the Senate and is close to securing a narrow House majority, further boosting optimism within the crypto sector.

“Trump’s victory has clearly bolstered market confidence in digital assets, as his administration is expected to favor crypto policies,” noted Le Shi, managing director at Hong Kong market-making firm Auros.

Bitcoin has already gained roughly 90% in 2024, driven by strong demand for US exchange-traded funds (ETFs) and the Federal Reserve’s interest rate cuts. The cryptocurrency’s record-breaking rise since the US election has outpaced other investments, including stocks and gold.

ETFs, led by BlackRock’s $35 billion iShares Bitcoin Trust, reached a record daily net inflow of nearly $1.4 billion on Thursday, while trading volume for the ETF peaked the day prior, underscoring the effect of Trump’s win on crypto enthusiasm.

Trump’s position stands in contrast to President Joe Biden’s administration, which intensified regulatory scrutiny on digital assets. Under Biden, SEC Chair Gary Gensler frequently highlighted fraud risks in the crypto sector and pursued stricter oversight following the 2022 market downturn and the collapse of FTX.

Crypto firms and advocates spent significantly during the campaign to support pro-crypto candidates, with hopes that a Republican-led Congress will ease regulatory pressure on the industry.

“With Trump’s promises of supportive regulations, and a crypto-friendly House and Senate, the path for favorable legislation appears clearer,” wrote Noelle Acheson, author of Crypto Is Macro Now