Bitcoin Nears $90,000 As Trump Victory Sparks Crypto Optimism

Bitcoin continued its push upwards to the brink of USD 90,000 on Tuesday, riding a wave of investor enthusiasm following Donald Trump’s election as US president. Traders are betting on a crypto-friendly administration that could open new opportunities for the digital asset space. 

Bitcoin, the world’s largest cryptocurrency, briefly touched USD 89,982, seeing an impressive 30 per cent rise since 5 November. Although it eased to USD 86,730 in late trading, down 1.4 per cent for the day, the rally remains one of the most striking moves in global markets since the election results.

Investors appear optimistic that Trump’s pro-crypto stance will pave the way for regulatory relief, potentially giving digital assets more room to flourish. Trump’s campaign had explicitly championed digital assets, with a pledge to transform the United States into a global hub for crypto innovation and build a national reserve of Bitcoin. While there are no specific details on how or when these promises might materialise, speculation alone has sent the market into a frenzy, propelling not only Bitcoin but also crypto-related stocks higher.

Crypto mining companies saw substantial gains as investors sought exposure to the sector’s anticipated growth. Riot Platforms soared nearly 17 per cent on Wall Street, while MARA Holdings and CleanSpark climbed close to 30 per cent on Monday. 

The gains weren’t limited to mining stocks; software company and prominent Bitcoin investor MicroStrategy also saw its shares jump 26 per cent after announcing it had acquired an additional USD 2 billion in Bitcoin between 31 October and 10 November. This influx of institutional interest signals confidence in Bitcoin’s long-term potential, reinforcing bullish sentiment across the market.

The positive ripple effect extended across the entire cryptocurrency landscape, with smaller tokens like ether and dogecoin joining the rally, though both slipped slightly in early European trading on Tuesday. Investors are also encouraged by Trump’s promise to replace US Securities and Exchange Commission Chair Gary Gensler, whose tenure has been marked by increased scrutiny of digital assets. A leadership change could shift the regulatory environment in favor of crypto, removing a significant source of uncertainty that has weighed on the industry.

Adding to the buzz, Trump unveiled his own crypto venture, World Liberty Financial, in September, drawing additional attention to the space. The former president and now president-elect’s direct involvement in a crypto business has piqued investor interest, fueling optimism that the industry could see even broader support and adoption under his administration. 

(Inputs from Reuters)