(Bloomberg) — Bitcoin is approaching $80,000 for the first time, buoyed by President-elect Donald Trump’s embrace of digital assets and the prospect of a Congress with pro-crypto lawmakers.
Most read from Bloomberg
The cryptocurrency rose as much as 4.3% to an unprecedented high of $79,771 on Sunday and remained near $79,000 as of 2:05pm in Singapore. Smaller tokens such as Cardano and crowd favorite Dogecoin also rose.
Trump pledged during his election campaign to put the United States at the heart of the digital assets industry, including creating a strategic stockpile of Bitcoin and appointing regulators fascinated by digital assets. He emerged from Tuesday’s election in a stronger position than expected, with his Republican Party controlling the Senate and on the cusp of a slim majority in the House of Representatives.
“As the dust from Trump’s win continues to settle, it was only a matter of time before some kind of wave occurred given the perception that Trump is pro-crypto, which is what we’re seeing now,” Lu Xi said. , Hong Kong managing director at market maker Auros.
ETFs, Fed
Bitcoin has added about 90% so far in 2024, helped by strong demand for dedicated US exchange-traded funds and interest rate cuts by the Federal Reserve. The rise in the largest digital token, which set new records after the US vote, exceeds returns on investments such as stocks and gold.
The ETFs, backed by BlackRock’s $35 billion iShares Bitcoin Trust, posted a record daily net inflow of about $1.4 billion on Thursday, according to data compiled by Bloomberg. And the day before, trading volume for the iShares ETF jumped to all-time highs — all signs of how Trump’s win will reshape cryptocurrencies.
Trump’s position contrasts with the crackdown on digital assets under President Joe Biden. Securities and Exchange Commission Chairman Gary Gensler has repeatedly described the sector as rife with fraud and misconduct. The agency has been clamping down on cryptocurrencies after a market rout in 2022 and a series of collapses, in particular the bankruptcy of Sam Bankman-Fried’s fraudulent FTX exchange.
Digital asset companies and executives spent large sums of money during the US election campaign to promote candidates seen as supportive of their interests.
“Trump has promised supportive regulation, and a sweep of the House and Senate makes passage of cryptocurrency bills much more likely,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.
Most read from Bloomberg Businessweek
©2024 Bloomberg L.P