November 10, 2024
Bitcoin soared to a new record high above $80,000 on Sunday, boosted by a surge of optimism in the days following President-elect Donald Trump’s election victory. The world’s largest cryptocurrency briefly reached the milestone before settling slightly below $80,000 on Sunday morning, marking an 80% increase for the year and far outpacing the S&P 500’s 25.7% annual gain.
The cryptocurrency industry has responded positively to Trump’s return to the White House, viewing it as a bullish sign for digital currencies. Once a bitcoin skeptic, Trump has shifted his stance in recent months, signaling strong support for the crypto market. This newfound enthusiasm follows the Trump family’s launch of a crypto venture, World Liberty Financial, in September.
“It’s very young and very growing,” Trump said of the cryptocurrency industry during the unveiling of World Liberty Financial. “I do believe in it.”
By contrast, the Biden administration took a cautious approach to crypto, with Securities and Exchange Commission (SEC) Chairman Gary Gensler raising concerns over “fraud, scams, and abuses” within the industry. Gensler’s SEC pursued high-profile legal actions against crypto companies and fraudsters, including FTX’s former CEO, Sam Bankman-Fried. The administration’s regulatory actions contrasted with Trump’s vision for a national crypto policy. In August, Trump called crypto “the future” and even proposed a national bitcoin stockpile, akin to the U.S. Strategic Petroleum Reserve.
The cryptocurrency industry has welcomed Trump’s election as a signal for growth and a loosening of regulatory constraints. Elon Musk, a well-known Trump supporter and vocal advocate for cryptocurrencies, saw his favored Dogecoin surge over 20% on Sunday, extending gains from the prior week.
With the Trump administration preparing to take office in January, the industry’s focus now shifts to potential policy shifts that could further support crypto assets. In August, Trump hinted at plans to “mine, mint, and make” cryptocurrency in the U.S., positioning it as a strategic national asset. For now, the bitcoin rally continues, underscoring the market’s optimism for a crypto-friendly White House.
Sources:
- Associated Press. (2024). “Bitcoin hits $80,000 as Trump’s election sparks crypto optimism.”
- Reuters. (2024). “Trump’s support for crypto industry fuels bitcoin rally post-election.”
