The price of bitcoin hit a new high Wednesday as investors laid their bets that former President Donald Trump’s victory in the U.S. presidential election will be net positive for cryptocurrency.
Bitcoin surged nearly eight per cent in early trading, climbing above USD$75,000, leaping its all-time high set in March. As is typical when Bitcoin flies, other cryptos catch a tailwind—and ether, which is the world’s second largest cryptocurrency by market cap, also rallied 8 per cent. Dogecoin, which is the preferred cryptocurrency of billionare Elon Musk, also enjoyed an 18 per cent jump.
Crypto-related shares outperformed the rest of the stock market. Coinbase Global (NASDAQ: COIN), one of the largest cryptocurrency exchanges, rose 17 per cent, while online brokerage Robinhood Markets, which offers crypto trading, climbed 12 per cent. MicroStrategy Incorporated (NASDAQ: MSTR), which is the largest corporate holder of bitcoin, also gained 10 per cent.
Once a crypto skeptic, Trump embraced cryptocurrencies ahead of the election.
He pledged to make America “the crypto capital of the planet” and establish a “strategic reserve” of bitcoin. His campaign accepted cryptocurrency donations, and he actively courted crypto fans at a bitcoin conference in July. He also launched World Liberty Financial, a new venture with his family members to trade cryptocurrencies.
“Bitcoin is the one asset that was always going to soar if Trump returned to the White House,” said Russ Mould, investment director at AJ Bell, a British online investment platform.
After setting all new highs, the market is now busy speculating when it will breach the USD$100,000 ceiling.
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Bitcoin earmarked to climb even higher
Crypto industry players welcomed Trump’s victory, hoping he would drive the legislative and regulatory changes they have long lobbied for.
Trump had already promised that, if elected, he would replace the chair of the Securities and Exchange Commission, Gary Gensler, who has led the U.S. government’s crackdown on the crypto industry.
“Tonight the crypto voter has spoken decisively — across party lines and in key races across the country,” said Brian Armstrong, CEO of Coinbase.
“Americans disproportionately care about crypto and want clear rules of the road for digital assets. We look forward to working with the new Congress to deliver it,” Armstrong posted on X.
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joseph@mugglehead.com
