Bitcoin’s price has surged past the $80,000 mark for the first time, sparked by Donald Trump’s decisive win in last week’s US presidential election. With Republicans potentially gaining full control of Congress, the crypto market is riding high on expectations of a more lenient regulatory environment.
Throughout his campaign, President-elect Trump expressed a desire to make the US “the crypto capital of the planet.” Bitcoin’s value has already risen over 80% this year, a testament to the heightened enthusiasm and market confidence in crypto-friendly policies.
The positive momentum is spilling over into other cryptocurrencies, including Dogecoin, a digital asset that has received public support from Elon Musk, a prominent Trump backer.
During the election period, Trump pledged to establish a strategic Bitcoin reserve and appoint financial regulators open to digital assets, setting the stage for reduced restrictions on the crypto industry. He has also stated plans to dismiss SEC chair Gary Gensler, who was appointed by Joe Biden in 2021 and is known for his tough stance on crypto regulation.
Market Analyst Matt Simpson of StoneX Financial believes that if Trump’s administration does ease crypto regulations, it could propel Bitcoin to new heights, potentially reaching $100,000. However, he warns that the path may still involve volatile fluctuations that could impact smaller investors.
Beyond crypto, Trump’s broader platform of tax cuts and business-friendly policies is driving gains across various markets. With Republican control of both the executive branch and, likely, both chambers of Congress, Trump’s economic vision could swiftly turn into actionable law. As a result, major US stock indexes, the dollar, and bonds have all seen upward momentum since his election victory.