Bitcoin has gone past the USD 80,000 milestone for the first time, riding a wave of optimism following President-elect Donald Trump’s commitment to fostering the digital asset industry.
The cryptocurrency climbed as much as 4.7 per cent to reach USD 80,092 on Sunday, marking an unprecedented high. Trump’s campaign promises to strengthen the United States’ role in digital assets, including the formation of a strategic Bitcoin reserve and the appointment of pro-crypto regulators, have galvanised the market. With Republicans securing the Senate and on track to control the House by a narrow margin, Trump’s victory is seen as a turning point for the regulatory environment surrounding digital currencies.
Bitcoin’s value has soared approximately 91 per cent in 2024, fueled by the robust demand for Bitcoin exchange-traded funds (ETFs) and the Federal Reserve’s recent cuts in interest rates. The rise in the cryptocurrency’s price, amplified by Trump’s win, has eclipsed gains in traditional investments like stocks and gold.
The spike has been particularly evident in BlackRock’s iShares Bitcoin Trust, which recorded an unprecedented daily net inflow of nearly USD 1.4 billion last Thursday. The previous day, trading volumes for the ETF reached an all-time high, reflecting the dramatic shift in investor sentiment and confidence as Trump’s policy positions reshape the crypto landscape.
Trump’s stance marks a notable contrast to the regulatory climate under President Joe Biden, whose administration took a strict approach to digital assets. Securities and Exchange Commission Chair Gary Gensler frequently warned of risks in the crypto sector, targeting fraud and misconduct following the high-profile collapse of Sam Bankman-Fried’s FTX exchange in 2022.
By contrast, Trump’s embrace of the digital economy is perceived as a signal to crypto-friendly lawmakers, who rallied support during the recent campaign, hoping to foster a more welcoming environment for blockchain-based companies and investors.
