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Cryptocurrencies extended their rally on Sunday, with Bitcoin hit $80,000 for the very first time.
The price of the flagship cryptocurrency was last up 4.5% at $79,800.19, according to Coin Metrics. Ether rose 3%, after surpassing the $3,000 level on Saturday. It last changed hands at $3,203.10.
Smaller coins saw bigger moves as investors continued to digest the implications of a second term for President-elect Donald Trump. The payment document XRP jumped 11%. The decentralized finance token linked to Cardano rose 40%. Coins dogecoin and the Shiba Inu coin soared 17% and 31%, respectively.
“Crypto is poised to enter a golden age,” Alex Thorn, head of research at Galaxy Digital, said in a research note on Friday. “Trump has promised to make America the “crypto capital of the world” and his top team is filled with staunch crypto advocates… The pro-crypto nature of his team, family and donors is growing the likelihood that Trump will follow through on his commitment.” campaign promises made to the industry.
Bitcoin hits $80,000 on Sunday for the first time.
Bitcoin has been considered a safe asset regardless of the outcome of the election – it is not considered a security even by the Securities and Exchange Commission, and Trump has made big overtures about Bitcoin, such as considering the the idea of a strategic national Bitcoin reserve and talk about it. the need to keep all bitcoins mined in America.
Ether and other cryptocurrencies, however, have much more to gain from the crypto-friendly regulatory environment that Trump has promised and which appears to be a priority for many in his inner circle. For example, one of the reasons that spot Bitcoin ETFs have not been as successful as Bitcoin ETFs is that they do not distribute staking rewards. Many in the industry hope that will change next year.
“In this environment, over the next two years, we expect bitcoin and other digital assets to trade significantly above the current all-time high,” Thorn said. “What was once an oppressive headwind in the world’s largest capital market will now turn into a tailwind, and no one is optimistic enough.”
Bitcoin and Ether have gained 18% and 32%, respectively, since Election Day. Coinbase rose 48% last week, its best week since January 2023.
