Bitcoin has hit another impressive milestone, surging past $80,000 for the first time as the world’s largest cryptocurrency enjoys renewed attention following the recent U.S. presidential election. This sharp rise arrived on the heels of Donald Trump's win on election night, prompting excitement among crypto investors.
Post-election, Bitcoin has been riding high, gaining approximately 80% this year alone. Comparatively, the S&P 500 has seen only around 25.7% growth over the same period. Some report Bitcoin hovered just under the $80,000 mark from midday Sunday after hitting the milestone earlier.
Industry leaders like Richard Teng, CEO of Binance—the world’s largest cryptocurrency exchange—expressed optimism about Trump's victory. He suggested the win marks the start of what he termed as a "golden era" for cryptocurrencies. Trump's promises during his campaign have led to speculation of more crypto-friendly regulations, leaving many investors hopeful.
Historically, Trump has been known for his skepticism toward Bitcoin, labeling it as "not money" and "based on thin air." Yet, his views shifted dramatically during his latest campaign, where he framed himself as the candidate who would lead the U.S. to become the "crypto capital of the planet." His campaign reportedly accepted digital currency donations, raking in millions from crypto enthusiasts.
Among those donations, one political action committee (PAC) named Trump 47 raised around $7.5 million through contributions of Bitcoin and other cryptocurrencies. This early support hinted at how entwined Trump's presidency could become with the burgeoning digital currency scene.
Some analysts suggest the price hike isn’t just coincidence, but rather due to Trump’s newfound support stemming from his personal interest and financial investment in the crypto space. Recently, he and his family initiated their own crypto venture, World Liberty Financial, reinforcing their commitment to the industry. During the launch, he stated, "It’s very young and very growing," indicating his belief in cryptocurrencies' future.
What’s interesting to note is the Biden administration's contrasting stance. Supporting regulations and expressing skepticism, the administration has pushed back against crypto markets, with key remarks from Securities and Exchange Commission (SEC) Chairman Gary Gensler indicating the market was “ripe with fraud, scams, and abuses.” The SEC’s scrutiny of the digital currency sphere was evident when it pursued action against companies it deemed operating illegally.
On the other hand, Trump diverged from this pathway, asserting plans for forming a national crypto stockpile, akin to the country's strategic petroleum reserves. He suggested buying and storing cryptocurrencies as part of national policy, showing how far he believes the sector could go.
Elon Musk, another figure greatly championing the crypto cause, saw his favored coin, Dogecoin, jump over 20% after the election results, illustrating the entwined destinies of politics and digital currencies.
The excitement doesn’t stop with Bitcoin. Ether, the second-largest cryptocurrency by market cap, also climbed substantially, more than doubling from approximately $150 billion at the start of 2023. It now stands at around $385 billion, showcasing the buoyant state of the overall crypto market.
With the surge leading to Bitcoin’s market value exceeding those of major corporations like Meta and Tesla, currently estimated at $1.6 trillion, the cryptocurrency world remains poised for significant evolution. Bitcoin's market cap growth has outpaced leading tech giants, raising conversations about its long-term viability and role within the global economy.
