Bitcoin has surged to a record high of nearly $80,000 due to US President-elect Donald Trump’s support of digital assets and the possibility of pro-crypto lawmakers in Congress.
The cryptocurrency soared 4.3 per cent to $79,771 on Sunday and reached nearly $79,000 at 2:05 pm in Singapore, according to a Bloomberg report. Smaller tokens such as Cardano and Dogecoin also climbed.
Donald Trump, during his election campaign, assured to put the US at the focus of the digital asset industry. This will include creating a Bitcoin stockpile and appointing related regulators.
On Tuesday, Trump secured a majority with a stronger margin than expected.
“With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that’s what we’re seeing now,” the report quoted Le Shi, Hong Kong managing director at market-making firm Auros.
In 2024, Bitcoin has increased by about 90 per cent, boosted by robust demand for US exchange-traded funds (ETF) and the key rate cuts by the Federal Reserve, the report added. This exceeds the returns from investments such as stocks and gold.
US exchange-traded funds
On Thursday, the ETFs led by $35 billion iShares Bitcoin Trust of BlackRock Inc. recorded a daily net inflow of $1.4 billion, the report said. The iShares ETF trading volume rose to an all-time high a day earlier, reflecting on Trump’s win and its impact on crypto.
Trump’s support for crypto is in contrast to President Joe Biden’s crackdown on digital assets. The digital asset industry is often claimed as a sector with fraud and misconduct by the Securities & Exchange Commission Chair Gary Gensler. In 2022, the Securities & Exchange Commission tightened the norms for digital assets mainly after the bankruptcy of Sam Bankman-Fried’s fraudulent FTX exchange.
During the US election campaign, digital asset companies spent a lot of money promoting candidates who were favourable to the industry, the report stated.
“Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely,” the report said quoting Noelle Acheson, author of the Crypto Is Macro Now newsletter.
