Bitcoin (BTC-USD) reached an all-time high on Monday, trading just below $87,000, fueling a surge in stocks related to cryptocurrency and contributing to the broader post-election rally. Companies linked to the crypto industry saw notable gains, with Coinbase (COIN), a leading cryptocurrency trading platform, rising more than 19% on Monday and soaring about 74% in the past five trading sessions. Similarly, Robinhood (HOOD), which also facilitates crypto trading, saw its stock jump more than 7%, marking a 35% increase over the past week.
This surge is part of a broader “Trump trade,” a market rally driven by expectations that sectors poised to benefit from a Trump administration would see gains following the election on November 6. While it’s unclear what specific crypto policies President-elect Donald Trump will pursue, his campaign made promises to support the industry. Trump had previously expressed support for Bitcoin and blockchain technology, and his victory seems to have reaffirmed the market’s optimism.
In July, Trump attended a Bitcoin conference in Nashville, where he courted voters in the crypto community, and he pledged to appoint a crypto Presidential Advisory Council, replace SEC Chair Gary Gensler, and create a “strategic national bitcoin stockpile.” Faryar Shirzad, Coinbase’s chief policy officer, expressed enthusiasm over the election results, highlighting the president-elect’s campaign promises to maintain U.S. leadership in the technology.
Other crypto-related assets have also benefited from the post-election optimism. BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin exchange-traded fund (ETF), gained more than 13% on Monday. MicroStrategy (MSTR), a company that holds nearly 280,000 bitcoins, saw its shares climb more than 25%. Between October 31 and November 10, MicroStrategy purchased approximately 27,200 bitcoins at an average price of $74,463.
Additionally, companies with Bitcoin on their balance sheets have experienced strong gains. Tesla (TSLA), which owns a portion of Bitcoin, saw its stock price increase by around 42% over the past five days, including a 9% jump on Monday. Tesla CEO Elon Musk, a vocal supporter of Trump during the campaign, has likely contributed to the stock’s rise, given his close ties with the president-elect. Reports suggest Musk has been frequenting Trump’s Mar-a-Lago resort since the election, further fueling speculation of a favorable business relationship between the two.
As Bitcoin and related stocks continue to climb, investors are keeping a close eye on the potential policies of the incoming Trump administration, particularly regarding the crypto industry, which has seen heightened interest due to Trump’s expressed support.
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