Bitcoin hits a record $81K as Trump’s victory sparks optimism for crypto, driving market growth and increasing investor confidence.
Bitcoin soared to a record high of $81,069.99 on Sunday, marking a significant milestone in the cryptocurrency market. According to Bloomberg, Bitcoin surged to a record high, largely driven by renewed optimism after President-elect Donald Trump’s victory. His pro-crypto stance, promising to support the digital asset sector, sparked increased investor confidence.
The victory in Arizona, one of the seven swing states, significantly boosted the crypto industry. Cryptocurrency enthusiasts who supported his campaign with more than $100m now expect a friendly regulatory outlook for digital currencies.
The volatile increases in its price can also be attributed to Trump, but they show a new direction in the market. The cryptocurrency is now 91% up in 2024, making it a better investment than stocks and gold. This growth comes behind increasing demand for US ETFs, with BlackRock’s iShares Bitcoin Trust experiencing record flow and trading volume.
Crypto Industry Sees Trump’s Victory as Positive Signal for Regulation
Le Shi, managing director at Auros, said such a market response was expected. Since Trump backed crypto during his campaign, his win was always likely to spur a shift in the market. For this reason, many people think this is the start of the next phase of crypto evolution.
One of Trump’s campaign promises was to make the U.S. a market leader in the world of cryptocurrency. He suggested having a Bitcoin reserve and having friendly regulators for the industry. This is unlike the Joe Biden administration, which has been less supportive of the new form of money, with SEC Chair Gary Gensler warning of fraud risks and stepping up regulation.
Still, the crypto industry sees Trump’s victory as a positive signal after numerous attempts to regulate it. Besides the Bitcoin rally, the increase in ETF investments indicates that investors have confidence in a favourable regulatory environment in the future. BlackRock’s Bitcoin ETF has become popular recently and recorded a net inflow of almost $1.4 billion in response to the election.
Based on these changes, Bitcoin’s and other cryptocurrencies’ advance shows the possibility of a shift in world financial systems. With Trump’s leadership, the U.S. could become a hub for crypto innovation, starkly contrasting the previous regulatory environment under Biden.
