SINGAPORE, Nov 12 (Reuters) – Bitcoin stood on the verge of $90,000 on Tuesday, riding a wave of euphoria since the election of Donald Trump as U.S. president on expectations his administration will be crypto friendly.
The world’s biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and touched $89,637 in Asia – a gain of more than 25% since Nov. 5.
“Obviously (it’s) a clear Trump trade as he is so supportive of the industry, and this can only mean more demand both for crypto stocks as well as the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney.
“The fact that bitcoin was trading near all-time highs when the election result came through meant that it had clean sky above.”
It is not clear how or when that could happen but the possibility drove a speculative surge in crypto mining and trading stocks.
“I think it increases the chances that other nation states buy bitcoin in a bid to front run the U.S.,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.
“Additionally I think it would be a crazy catalyst for the U.S. listed Bitcoin miners … given possibilities of such entities getting nationalised.”
The euphoria extended across the crypto landscape with smaller tokens such as ether and even one-time joke currency dogecoin having surged.
Crypto investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chair Gary Gensler whom Trump has said he will replace. Trump also unveiled a new crypto business, World Liberty Financial, in September.
“What we’re seeing isn’t just a price milestone; it’s a signal that the market is warming to the idea of bitcoin as a more stable, even politically favoured, asset,” said Justin D’Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock.
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Reporting by Tom Westbrook.
Editing by Shri Navaratnam
Our Standards: The Thomson Reuters Trust Principles.
