Bitcoin surged to a record on Wednesday, reaching over $90,000, as the cryptocurrency market reacted positively to president-elect Donald Trump‘s commitment to reducing regulatory constraints on digital assets.
Data from crypto news outlet Coindesk showed Bitcoin climbed to an unprecedented high of $91,000 before settling back slightly to $90,670, reflecting strong investor confidence fueled by anticipated policy shifts in favor of cryptocurrency.
How Large An Asset Is Bitcoin?
On Tuesday Bitcoin became the eighth largest asset in the world following Trump‘s election success.
The cryptocurrency overtook silver to become the world’s eighth largest asset, reaching a market capitalization of $1.752 trillion and narrowly surpassing silver’s $1.726 trillion.
In the wake of Trump’s victory over Kamala Harris in the Nov. 5 presidential election, traditional currency, cryptocurrency markets, individual stocks, and U.S. equities have all seen significant gains.
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Why Has Bitcoin Surged?
Investors are responding to expectations of deregulation and potential tax cuts under the 47th U.S. president. This market surge, dubbed the “Trump Effect” by news platform Techgraph, reflects optimism around anticipated economic policies favoring business growth and investment.
Since Tuesday, Bitcoin’s valuation has climbed significantly, approaching the $1.804 trillion market cap of Saudi Aramco, the Saudi state-controlled petroleum and natural gas giant. However, Bitcoin still trailed behind tech leaders including Microsoft, Apple, Google, and NVIDIA, which hold the top positions globally. Gold remains the world’s most valuable asset, with an unmatched market capitalization of $17.6 trillion on Tuesday.
Does Trump Support Bitcoin?
During his 2024 campaign, Trump’s interest in the cryptocurrency market grew, despite him previously deriding Bitcoin as “a scam.”
“I don’t like it because it’s another currency competing against the dollar,” he said in 2021. He later said he wanted the U.S. to become “the crypto capital of the planet.”
Although he has not detailed specific crypto policies, Donald Trump has shown increasing engagement with the cryptocurrency community, including serving as a keynote speaker at Bitcoin 2024 in Nashville, Tennessee, last July.
Trump also announced he would create “a bitcoin and crypto presidential advisory council,” offering a more collaborative approach to crypto regulation by giving industry insiders a seat at the table.
Further signaling his interest in the sector, Trump announced the launch of his own crypto venture, World Liberty Financial, in September. These moves reflect a growing alignment with the industry, suggesting potential crypto-friendly initiatives in his upcoming term.
Experts had anticipated a surge in cryptocurrency markets following Trump’s election victory, driven partly by his commitment to ousting SEC Chair Gary Gensler and bolstering Bitcoin mining within the U.S., as reported by Coin Telegraph. These potential policy changes are seen as favorable to the crypto sector, with investors expecting reduced regulatory barriers and increased support for digital asset development in the country.
Newsweek has reached out to Trump’s representatives for a comment via email.
