Bitcoin smashed through the $80,000 milestone late Sunday, reaching an all-time high of $81,858 amid post-election optimism in the US, as pro-crypto policies appear more likely under President-elect Donald Trump.
Early Monday, Bitcoin settled around $81,500, marking a nearly 18.5 per cent increase over the past week, as reported by Forbes.
A check by PUNCH Online on CoinMarketCap on Monday pegged Bitcoin’s value at $82,368.15, with a market cap of $2.79 trillion and a volume of $237.48 billion as of 11:26 a.m. Nigerian time.
FXStreet noted that Bitcoin climbed over 6 per cent on Sunday alone, lifting sentiment across the crypto market, with Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) all experiencing gains. Ether rose by 28.7 per cent over the past week to $3,165, while Dogecoin spiked by 83 per cent.
Analysts suggest a new regulatory landscape may be emerging as Republicans flipped the Senate and bolstered their House majority, fuelling hopes of a more favourable environment for crypto.
Trump’s previous administration leaned heavily towards scepticism regarding digital currencies, but the president-elect has since embraced crypto, pledging to make the US the “crypto capital of the planet.”
CNBC noted that Trump promised to retain “100 per cent of all the Bitcoin the US government currently holds or acquires in the future” and to dismiss SEC Chair Gary Gensler, whose tenure saw over 100 regulatory actions against crypto firms.
According to CoinTelegraph, traders are bullish, with some calling this rally “just the beginning” of a potential breakout in Bitcoin’s price. “Bitcoin has maintained an upward swing since Donald Trump’s victory in the polls,” traders said, though they caution against impulsive moves as volatility could still test new highs.
The crypto boom has also benefited related stocks, with Coinbase’s share price surging by 50 per cent in the last five days, and rising another 15.6 per cent in pre-market trading on Monday, reaching $312.92.
Trump’s pro-crypto stance has gained endorsements from prominent industry figures, including billionaire investors Cameron and Tyler Winklevoss and Marc Andreessen. His vice president-elect, Sen. JD Vance (R-Ohio), is a well-known Bitcoin investor.
Bernstein analysts, led by Gautam Chhugani, projected a path for Bitcoin to reach between $80,000 and $90,000 within two months if Trump won.
Last month, Standard Chartered’s Geoff Kendrick suggested that under a Trump administration, Bitcoin could even hit $125,000 by the end of 2024.
Crypto’s Role in US Election
The 2024 election cycle saw crypto become the top corporate donor, with Public Citizen reporting that industry contributions made up 44 per cent of corporate donations.
Pro-crypto PACs, such as Fairshake and Defend American Jobs, which favour Republicans, and Protect Progress, which backs Democrats, collectively funnelled $135 million into races this year, The New York Times reports.
As of Sunday, crypto-backed candidates achieved significant success, with 268 pro-crypto House representatives and 19 pro-crypto senators elected, according to the non-profit Stand With Crypto.
With BTC now trading above $80,000, the crypto industry is celebrating, though traders remain cautiously optimistic. “Bitcoin is breaking records as a weekend BTC price surge delivers almost $82,000 to start the week,” reports CoinTelegraph.
Traders speculate that this surge could continue, albeit with caution regarding potential market retracements as the US gears up for anticipated regulatory adjustments in 2025.
