Bitcoin reached a new record high of over $81,000 on Monday. This surge is driven by hopes that cryptocurrencies will thrive in a positive regulatory landscape after Donald Trump’s election as U.S. president, alongside the success of pro-crypto candidates in Congress.
The world’s largest and most recognized cryptocurrency has more than doubled from its lowest point this year, which was $38,505. Currently, Bitcoin stands at $81,572, having previously peaked at $81,899.
During his campaign, Trump embraced digital assets and pledged to make the United States the “crypto capital of the planet.” He also promised to build a national stockpile of bitcoin.
After the election, other so-called “Trump trades,” including U.S. stocks and shorting bonds, have lost momentum. However, cryptocurrencies continue to thrive.
“Bitcoin’s Trump-pump is alive and well… with Republicans on the cusp of taking the house to confirm a red wave in Congress, it seems the crypto crowd are betting on digital-currency deregulation,” stated Matt Simpson, a senior market analyst at City Index. He highlighted the potential for Republican control of both houses.
Simpson cautioned that Trump will probably focus on other priorities in the near term. However, crypto investors believe that the heightened scrutiny from U.S. Securities and Exchange Commission Chair Gary Gensler is likely to end. Trump has stated that he intends to fire Gensler.
The cryptocurrency industry invested over $119 million to support candidates who favor crypto in Congress, and this effort has largely paid off.
In Ohio, the industry successfully ousted one of its main opponents, Senate Banking Committee Chair Sherrod Brown. Pro-crypto candidates from both the Democratic and Republican parties won in states such as Michigan, West Virginia, Indiana, Alabama, and North Carolina.
In September, Trump launched a new cryptocurrency venture named World Liberty Financial. Although details about the business remain limited, investors view his personal involvement in the sector as a positive sign.
Billionaire Elon Musk, a key ally of Trump, is also a supporter of cryptocurrencies.
Additionally, Eric Trump, one of the president-elect’s sons and the executive vice president of The Trump Organization, will be a keynote speaker at an upcoming bitcoin conference in Abu Dhabi next month, as confirmed by the event organizers.
The cryptocurrency market has seen widespread gains. On Monday, Ether climbed above $3,200 for the first time in over three months and was last trading at $3,192. Meanwhile, Dogecoin, which started as a satirical response to the 2013 crypto boom, reached a three-year high.
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