Bitcoin has just hit a major milestone, crossing the $80,000 mark for the first time ever. The cryptocurrency soared as much as 4.7% on Sunday, driven by the election of President-elect Donald Trump, whose pro-crypto policies have created a wave of optimism in the digital asset space.
The price surge marks a significant turning point, as Bitcoin reaches new highs just days after Trump’s victory in the 2024 U.S. elections. With Trump’s Republican Party gaining control of the Senate and likely securing a slim majority in the House of Representatives, all signs point to an environment more favorable to digital assets.
Trump’s promises during his campaign to make the U.S. a leader in the digital-asset space are coming to fruition, and the market is reacting positively. He has outlined plans to create a strategic Bitcoin stockpile and appoint regulators who are more supportive of cryptocurrencies, which is driving the current rally.
“As soon as Trump’s victory became clear, it was almost guaranteed that we’d see a price bump,” said Le Shi, managing director at crypto market-making firm Auros in Hong Kong. “The perception of Trump as pro-crypto is certainly helping to fuel this surge.”
Bitcoin has had an impressive run in 2024, skyrocketing by a staggering 91% year-to-date. This surge has outpaced traditional assets like stocks and gold, largely due to the growing popularity of Bitcoin-focused ETFs and the Federal Reserve’s interest rate cuts.
The BlackRock iShares Bitcoin Trust, which manages a $35 billion fund, has been a key driver. The ETF saw a record $1.4 billion in net inflows on Thursday alone, marking its largest daily inflow to date. Additionally, its trading volume hit an all-time high, reflecting how Trump’s win is reshaping the market and attracting institutional interest.
Crypto companies spent heavily during the 2024 U.S. election cycle to support candidates seen as friendly to digital assets. Trump’s win is seen as a huge victory for the industry, especially with a Republican-controlled Congress that could pave the way for crypto-friendly regulations.
Trump’s vision includes supportive policies for crypto companies, such as tax breaks, clearer regulations, and efforts to foster innovation in the digital-asset space. With both the House and Senate now under Republican control, there’s a greater chance that legislation favorable to the cryptocurrency market could be fast-tracked.
Noelle Acheson, author of Crypto Is Macro Now, wrote, “Trump has promised supportive regulation for the crypto industry, and with control of Congress, it’s much more likely that pro-crypto bills will make it through.”
