Following Donald Trump’s election, Bitcoin has surged close to $90,000, igniting a historic rally driven by expectations of crypto-friendly policies. Trump’s leadership has intensified investor interest in the crypto sector, while other digital assets and mining stocks have joined the upward trend. Trump’s vision for digital assets signals a potential shift in the regulatory landscape that could benefit the industry.
Trump’s Election and Bitcoin’s Historic Surge
Since Trump’s election, Bitcoin has witnessed an unprecedented rally, approaching the $90,000 mark, one of its most impressive gains in recent memory. Bolstered by optimism for pro-crypto policies under the new administration, Bitcoin reached $89,637 during Asian trading hours, marking a rise of over 25% since November 5. This growth reflects increasing optimism for digital assets under Trump’s leadership, with investors embracing the prospect of regulatory changes that could further support the sector.
The “Trump Trade” Boosts Crypto Markets
Bitcoin’s rally aligns with impressive gains in Tesla shares, which have surged by more than 40% since the election. Investors are anticipating that Trump’s policies will benefit sectors like crypto, with Nick Twidale, Chief Market Analyst at ATFX Global, describing the trend as “a clear Trump trade supporting the sector.” Twidale noted that demand for cryptocurrencies and related stocks could increase as Bitcoin approaches record highs, opening new growth opportunities.
Trump’s Crypto Vision: Policies and Promises
Throughout his campaign, Trump expressed strong support for digital assets, with ambitions to make the U.S. the “crypto capital of the world” and potentially create a national Bitcoin reserve. While these plans remain speculative, the mere possibility of such pro-crypto measures has spurred activity in speculative trading and mining. According to Matthew Dibb, Chief Investment Officer at Astronaut Capital, this could also drive international demand for Bitcoin as other countries look to compete with the U.S.
Post-Election Crypto Excitement
The post-election rally has extended beyond Bitcoin, benefiting smaller tokens like Ethereum and Dogecoin, as well as mining companies. Notably, Wall Street-based miner Riot Platforms rose by 17%, with MARA Holdings and CleanSpark following suit. MicroStrategy, a major Bitcoin investor, disclosed that it purchased $2 billion in Bitcoin between October 31 and November 10, causing its shares to rise by 26%, a trend that continued in after-hours trading.
Regulatory Shifts on the Horizon
Crypto markets are optimistic about a potential shift towards a more crypto-friendly regulatory environment under Trump’s administration. Speculation surrounds a possible SEC leadership change, with the new head expected to adopt favorable policies. Trump’s own venture, World Liberty Financial, further underscores his commitment to the crypto space. Justin D’Anethan, Asia-Pacific Head of Business Development at Keyrock, noted that these changes could make Bitcoin not only a high-value asset but also a more stable and politically favored one.
