Bitcoin hit an all-time high of nearly $80,000 due to US President-elect Donald Trump’s support for digital assets and the possibility of pro-crypto lawmakers in Congress.
The cryptocurrency climbed 4.3% to $79,771 on Sunday and reached nearly $79,000 as of 2:05 p.m. in Singapore, according to a Bloomberg report. Smaller tokens such as Cardano and Dogecoin have also climbed.
Donald Trump, during his election campaign, ensured that he placed the United States at the center of the digital assets industry. This will include the creation of a Bitcoin stock and the appointment of relevant regulators.
On Tuesday, Trump won a majority by a stronger margin than expected.
“While the dust from Trump’s victory still settled, it was only a matter of time before some sort of surge occurred given the perception that Trump is pro-crypto, and c “This is what we are seeing now,” the report quotes. Le Shi, Hong Kong managing director of market-making company Auros.
In 2024, Bitcoin will rise by about 90%, driven by strong demand for U.S. exchange-traded funds (ETFs) and key rate cuts from the Federal Reserve, the report adds. This exceeds the returns of investments such as stocks and gold.
US Exchange Traded Funds
On Thursday, ETFs led by BlackRock Inc.’s $35 billion iShares Bitcoin Trust saw a daily net inflow of $1.4 billion, according to the report. iShares ETF trading volume hit an all-time high a day earlier, reflecting Trump’s victory and its impact on crypto.
Trump’s support for crypto contrasts with President Joe Biden’s crackdown on digital assets. The digital assets industry is often considered an area of fraud and misconduct by Securities & Exchange Commission Chairman Gary Gensler. In 2022, the Securities & Exchange Commission tightened standards for digital assets, mainly after the collapse of Sam Bankman-Fried’s fraudulent FTX exchange.
During the US election campaign, digital asset companies spent a lot of money promoting industry-friendly candidates, the report said.
“Trump has promised favorable regulation, and the sweep of the House and Senate makes passage of crypto bills much more likely,” the report said citing Noelle Acheson, author of the newsletter Crypto Is Macro Now .
