Bitcoin approached the $90,000 mark on Tuesday, boosted by a rally following Donald Trump’s victory in the U.S. presidential election. Investors are optimistic that Trump’s administration will be friendly toward digital assets, propelling the world’s largest cryptocurrency to unprecedented levels. In early Asian trading, Bitcoin reached $89,637, marking an impressive 25% surge since November 5.
The rally extends beyond Bitcoin, with several crypto-related stocks and assets enjoying substantial gains. One of the standout performers, Elon Musk’s automaker Tesla, has seen a nearly 40% increase since the election, reflecting investor expectations that Trump’s administration could benefit industries closely aligned with his interests.
“Clearly, this is a Trump trade as he has shown strong support for the industry, and it signals increased demand for both crypto stocks and digital currencies,” said Nick Twidale, chief market analyst at ATFX Global in Sydney. He added that Bitcoin’s already high trading levels around the time of the election opened up further growth opportunities, contributing to its “clear sky above.”
Trump’s pro-crypto stance sparks market optimism
Throughout his campaign, Trump championed digital assets, promising to make the United States the “crypto capital of the planet.” His support for cryptocurrencies and vision of accumulating a national stockpile of Bitcoin has emboldened investors, fueling a speculative rush in crypto mining and trading stocks. While Trump has not detailed how or when this accumulation might take place, the possibility alone has spurred excitement and driven market activity.
Matthew Dibb, Chief Investment Officer at cryptocurrency asset manager Astronaut Capital, noted that Trump’s plans could spur other countries to consider buying Bitcoin in anticipation of the U.S. moving in this direction. “This could act as a catalyst for U.S.-listed Bitcoin miners if nationalization becomes a possibility,” Dibb said. Such a move could signal a major shift in the crypto industry, with potential global implications.
Surge in crypto mining and trading stocks
Crypto mining stocks have also benefited from the current bullish wave. Riot Platforms, a major player in Bitcoin mining, saw its stock rise nearly 17% on Wall Street, with additional gains in after-hours trading. Similarly, fellow miners MARA Holdings and CleanSpark experienced leaps of nearly 30% as investors speculated on the industry’s potential growth under a Trump administration. The boost in these stocks suggests investor confidence that favorable regulatory changes are likely to bolster mining profitability.
The recent buying spree also included high-profile software company and Bitcoin investor MicroStrategy. Between October 31 and November 10, the company spent around $2 billion on Bitcoin, which has sparked a 26% rise in its shares. This move reaffirms MicroStrategy’s commitment to Bitcoin as a primary asset, a strategy that aligns with Trump’s vision for the U.S. to adopt a pro-crypto stance.
Smaller tokens and altcoins join the rally
The market excitement hasn’t been limited to Bitcoin alone. Other cryptocurrencies, including Ethereum’s ether and the meme-based dogecoin, have also surged significantly in recent days. The broader crypto market is riding a wave of euphoria, with traders increasingly betting on Trump’s promises of a supportive regulatory environment for digital assets.
The rally has come amid speculation that Trump might remove U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, who has been known for his cautious approach to regulating the crypto industry. The potential replacement of Gensler could signal a more lenient approach to digital assets, lifting some of the regulatory hurdles that have dampened market growth in recent years.
In September, Trump unveiled his own crypto business, World Liberty Financial, further reinforcing his commitment to fostering a crypto-friendly landscape. Investors see this move as a sign that digital assets may gain an elevated status in the financial ecosystem under Trump’s administration.
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Market analysts weigh in
Market experts see the current price milestone as more than just a speculative bubble. “What we’re witnessing isn’t just a price milestone; it’s a sign that the market is warming to the idea of Bitcoin as a more stable, even politically favored, asset,” said Justin D’Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock. D’Anethan highlighted that Trump’s win may help foster confidence in cryptocurrencies as assets that could gain mainstream institutional support.
A changing regulatory landscape?
Crypto investors are particularly enthusiastic about the possibility of regulatory changes that could alleviate some of the pressures and restrictions imposed by the SEC. Trump’s statements on replacing Gensler have spurred optimism that his administration could lead to a more favorable regulatory environment, benefiting the crypto ecosystem. The prospect of a “crypto-friendly” administration has already attracted interest from institutional investors and financial entities, who see this as an opportunity for a market free from excessive regulation.
As Bitcoin inches closer to the symbolic $90,000 mark, Trump’s election has catalyzed a dramatic shift in the crypto landscape, fueling speculation, rallying prices, and sparking a renewed wave of optimism across the market. Crypto advocates and investors are now eagerly anticipating Trump’s next steps, hopeful that his pro-crypto stance could usher in a new era of growth and legitimacy for digital assets.
