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Home News Bitcoin Surges Past $81,000, Fueled by Trump’s Pro-Crypto Stance and Political Shifts

Bitcoin Surges Past $81,000, Fueled by Trump’s Pro-Crypto Stance and Political Shifts

by Barbara

Bitcoin surged to an all-time high above $81,000, driven by President-elect Donald Trump’s favorable stance on digital assets and the anticipated influence of pro-crypto lawmakers in the newly elected Congress. Trump’s victory in Arizona solidified his clean sweep across seven U.S. battleground states, propelling the digital-asset market into a celebratory rally. The industry, which spent over $100 million backing crypto-friendly candidates, is now reaping the rewards of Trump’s win.

On Sunday, Bitcoin jumped by as much as 6.1%, hitting a peak of $81,497 early on Monday in Asia. The price later settled at $80,835 by 9:30 a.m. in Singapore. This bullish momentum extended to smaller cryptocurrencies, with Dogecoin—a favorite among meme coin enthusiasts and championed by Trump ally Elon Musk—also seeing a notable surge.

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According to Le Shi, managing director at market-making firm Auros in Hong Kong, the recent rally was inevitable, given the market’s perception of Trump as a pro-crypto figure. “With the dust from Trump’s victory still settling, it was only a matter of time before we saw this kind of price run-up,” he said.

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Trump’s Pro-Crypto Agenda

During his campaign, Trump made bold promises to establish the U.S. as a global leader in the digital-asset space, including plans for a strategic Bitcoin stockpile and appointing regulators favorable to the industry. Traders, despite acknowledging uncertainties about the speed of implementation, have embraced these promises, fueling a buying frenzy across cryptocurrencies.

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Trump’s broader agenda, which includes economic growth initiatives, tax cuts, and deregulation, has already ignited a market rally in stocks, bonds, and now crypto. The S&P 500 hit its 50th record high of the year last week, reflecting investor optimism.

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So far in 2024, Bitcoin has gained approximately 93%, driven by strong demand for U.S.-based exchange-traded funds (ETFs) and supportive monetary policies from the Federal Reserve, including rate cuts. The rise of Bitcoin has far outpaced traditional investments like stocks and gold.

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The iShares Bitcoin Trust, backed by BlackRock’s $35 billion ETF, saw a record daily inflow of nearly $1.4 billion last Thursday. A day prior, the fund’s trading volume reached an all-time high—clear indicators that Trump’s victory is reshaping the landscape for crypto.

Institutional Demand on the Rise

Richard Galvin, founder of crypto investment firm DACM, highlighted the significant role institutional investors are playing in Bitcoin’s rise. “We believe a substantial portion of the institutional market held off buying ahead of the election and is now re-entering post-Trump’s win,” Galvin noted. “This is likely to create sustained buying pressure for some time.”

Trump’s pro-crypto stance marks a stark contrast to the crackdown on digital assets under President Joe Biden, whose Securities and Exchange Commission (SEC) chair, Gary Gensler, has labeled the industry as riddled with fraud and misconduct. The SEC’s aggressive actions in the aftermath of the 2022 market downturn, which included the collapse of the fraudulent FTX exchange, have heightened scrutiny on the sector.

Crypto’s Political Influence

The crypto industry invested heavily in the election to support candidates who favored its interests. Trump’s newfound support for digital assets—an industry he once dismissed as a “scam”—has come as a major shift. His commitment to supportive regulation, combined with the Republican Party’s recent victories in the House and Senate, increases the likelihood of favorable crypto legislation passing in the near future.

“Noelle Acheson, author of the Crypto Is Macro Now newsletter, remarked, “Trump’s promise of supportive regulation, along with the GOP’s control of both chambers, makes it more likely that crypto bills will advance.”

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