Bitcoin reached an all-time high of $80,000 on Sunday, setting a new record as Donald Trump’s recent election victory sent waves of enthusiasm through the cryptocurrency market. The digital currency began its ascent days before Tuesday’s election, spiked further on election night as Trump’s win became clear, and has maintained its upward momentum since. By Sunday morning, Bitcoin had briefly hit the $80,000 milestone before trading slightly below it, signaling unprecedented optimism among crypto investors. This remarkable surge has given Bitcoin an annual gain of 80%, greatly surpassing the S&P 500’s impressive 25.7% rise.
Trump’s presidency is expected to mark a turning point for cryptocurrency, with the digital asset industry anticipating more favorable policies. Once a vocal skeptic of Bitcoin, Trump had previously questioned its value, calling it “based on thin air.” However, his position shifted markedly over the last year, especially after he and his family launched a new crypto venture called World Liberty Financial in September. At the company’s unveiling, Trump described the cryptocurrency sector as “very young and very growing,” indicating his optimism about its long-term potential and signaling his new embrace of digital currencies.
Trump’s support for cryptocurrency is a sharp contrast to the Biden administration, which took a cautious and skeptical approach to the sector. Under the leadership of SEC Chairman Gary Gensler, the Biden administration ramped up regulatory scrutiny of digital assets. Gensler, a staunch advocate for regulation, voiced concerns about potential fraud in the crypto market, labeling it “ripe with fraud, scams, and abuses” during a 2021 speech. Throughout his tenure, Gensler’s SEC pursued legal action against crypto companies and individuals, including the high-profile case of Sam Bankman-Fried, former CEO of FTX. In addition to regulatory crackdowns, Gensler delayed the approval of a bitcoin exchange-traded fund (ETF), a key development sought by crypto advocates to bring Bitcoin into mainstream investment portfolios. Though the ETF was eventually approved, its rollout was slow, signaling the administration’s reluctance toward full crypto endorsement.
Trump’s vision for cryptocurrency extends beyond personal investment. He has put forth ambitious ideas for integrating digital assets into the American economy, proposing that cryptocurrency be “mined, minted, and made in the USA.” Additionally, Trump has suggested establishing a strategic national Bitcoin reserve, modeled after the U.S. Strategic Petroleum Reserve, where the government would acquire and store Bitcoin as a national asset. This bold idea underscores Trump’s intention to use digital currencies as tools of economic strength and security, positioning cryptocurrency as an integral part of America’s financial future.
Elon Musk, a prominent Trump supporter and crypto enthusiast, has amplified this surge in crypto confidence. Known for his endorsement of Dogecoin, Musk has long been an influential figure in the digital currency space. Following Trump’s win, Dogecoin surged by over 20% on Sunday, adding to a week of gains. Musk’s support, coupled with Trump’s pro-crypto stance, has generated widespread optimism that the market will flourish under the new administration.
For the cryptocurrency industry, Trump’s victory signals the beginning of a transformative era. With Trump and high-profile allies like Musk backing digital currency, the sector is poised for expansion, as the incoming administration promises a shift from regulatory restriction to a supportive and inclusive environment. Investors and industry leaders anticipate that Trump’s policies will pave the way for cryptocurrency to play a crucial role in the nation’s economic landscape, elevating digital assets from speculative investments to foundational elements of America’s financial system.
