Bitcoin surged past $81,000 over the weekend, marking a new all-time high as markets reacted to President-elect Donald Trump's recent election victory and his stated support for digital assets. The cryptocurrency's rally underscores how Trump's ascent, coupled with the anticipation of a Congress filled with pro-crypto lawmakers, is reshaping sentiment in the digital asset space.
The price of the world's largest cryptocurrency soared by as much as 6.1% on Sunday, reaching a peak of $81,497 during Asian trading hours on Monday. The rise was mirrored across the broader crypto market, with smaller tokens, such as Dogecoin-boosted by Trump ally and tech magnate Elon Musk-also seeing sharp gains.
"With the dust from Trump's victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that's what we're seeing now," said Le Shi, managing director at market-making firm Auros in Hong Kong, as reported by Bloomberg.
Trump's victory, which saw him sweep key battleground states, has fueled optimism within the crypto industry. The president-elect's campaign emphasized creating a strategic Bitcoin reserve and appointing regulatory leaders who favor digital assets, a stark departure from the approach of the Biden administration. Trump's rhetoric during the campaign focused on making the U.S. a global hub for digital currencies, promising reduced regulatory hurdles and supportive policies.
"President Trump won a historic election decisively, and leaders from around the world know America will return to prominence on the world stage," Trump communications director Steven Cheung said in a statement. "That is why leaders have begun the process of developing stronger relationships with the 45th and 47th President because he represents global peace and stability."
The market's reaction highlights a clear contrast to the regulatory stance of the Biden administration. Under President Biden, the Securities and Exchange Commission (SEC), led by Gary Gensler, took a hardline approach to crypto, citing concerns of fraud and market manipulation. Gensler's tenure was marked by a series of high-profile enforcement actions, including the crackdown on FTX and its CEO Sam Bankman-Fried, who faced charges of fraud and misconduct.
Trump's victory and stated pro-crypto policies have sparked renewed investor enthusiasm. BlackRock's iShares Bitcoin Trust, a key U.S.-based exchange-traded fund (ETF), saw record inflows, with trading volumes reaching all-time highs, further driving demand for Bitcoin. "Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely," said Noelle Acheson, author of the Crypto Is Macro Now newsletter.
The sharp rally in Bitcoin and related assets has coincided with broader market optimism driven by expectations of economic growth and deregulation under a Trump administration. The S&P 500 also notched record gains last week, reflecting bullish sentiment across multiple asset classes.
Trump's campaign promises, including plans for a strategic national Bitcoin reserve and bolstered domestic production of cryptocurrencies, have been interpreted by industry insiders as a potential boon for U.S. dominance in digital finance. The president-elect's calls to "mine, mint, and make" digital assets within the U.S. echo a broader push to fortify the nation's role in the burgeoning crypto market.
Meanwhile, Trump's allies, such as Elon Musk, have continued to champion the rise of cryptocurrencies. Dogecoin, a popular meme token frequently endorsed by Musk, saw a 20% spike in value over the weekend, extending gains from the previous week.
