Bitcoin is approaching $80,000 for the first time, boosted by President-elect Donald Trump’s support for the digital asset and the prospect of a Congress featuring pro-crypto lawmakers.
The cryptocurrency rose as much as 4.3% on Sunday to an unprecedented $79,771 and was hovering around $79,000 as of 2:05 p.m. in Singapore. Smaller tokens such as Cardano and Dogecoin, popular with the meme crowd, also rose.
During his campaign, Mr. Trump vowed to put the United States at the center of the digital asset industry, including creating a strategic Bitcoin stockpile and appointing regulators passionate about digital assets. He won Tuesday’s election in a stronger-than-expected position. His Republican Party has a majority in the Senate and is close to securing a slim majority in the House.
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Also read: Bitcoin hits record high, soars above $75,000 following US election results
“The dust has yet to settle on Trump’s victory, but given the perception that Trump is a crypto supporter, it’s only a matter of time before some kind of run-up occurs, and that’s what we’re seeing now.” Le Shi said. , Hong Kong Managing Director of market-making company Auros.
Bitcoin has risen about 90% through 2024, supported by strong demand for U.S.-only exchange traded funds (ETFs) and interest rate cuts by the Federal Reserve. The rally in the biggest digital token, which broke new records after the US vote, has exceeded returns from investments such as stocks and gold.
The ETF powered by BlackRock Inc.’s $35 billion iShares Bitcoin Trust posted record daily net inflows of about $1.4 billion on Thursday, according to data compiled by Bloomberg. A day earlier, the iShares ETF’s trading volume soared to an all-time high, all signs of how President Trump’s victory is reshaping cryptocurrencies.
President Trump’s stance stands in contrast to the crackdown on digital assets under President Joe Biden. Securities and Exchange Commission Chairman Gary Gensler has repeatedly labeled the industry as rife with fraud and illegal activity. The agency turned the screw on cryptocurrencies in the wake of the 2022 market crash and series of collapses, particularly the bankruptcy of Sam Bankman Fried’s fraudulent FTX exchange.
Digital asset companies and executives spent millions during the US election campaign to promote candidates deemed favorable to their interests.
Noel Acheson, author of the newsletter Crypto Is Macro Now, wrote: “Trump has promised regulatory support, and overwhelming House and Senate victories make passing crypto legislation much more likely.” There is.
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