Trump’s pro-crypto agenda drives Bitcoin to new record highs

Bitcoin surged to a record high, breaking the USD 89,000 threshold early Tuesday and marking an unprecedented milestone for the cryptocurrency market. This surge has lifted the total value of digital currencies to new highs, surpassing levels seen during the COVID-19 pandemic.

The rise is fueled by investor confidence in a pro-cryptocurrency agenda under US President-elect Donald Trump. Since the US election on November 5, Bitcoin has jumped 32 percent, reaching an all-time high of USD 89,599, according to Bloomberg.

Throughout his campaign, Trump expressed strong support for cryptocurrencies, pledging to transform the US into the “crypto capital of the planet.” His campaign promises included creating a national Bitcoin reserve and boosting domestic Bitcoin mining. He also introduced a new cryptocurrency, “World Liberty Financial,” in September, further signaling his intent to integrate digital assets into the economy.

The broader cryptocurrency market responded with substantial gains across crypto-related companies. Shares of Riot Platforms, a Bitcoin mining company, surged by 17 percent on Wall Street, while MARA Holdings and CleanSpark stocks jumped 30 percent. Additionally, software giant MicroStrategy disclosed a USD 2 billion investment in Bitcoin, leading its shares to climb 26 percent in after-hours trading.

The ripple effect extended to smaller cryptocurrencies, with Ether rising 5.2 percent and Dogecoin soaring 35 percent.

Investors are hopeful that the Trump administration will relax regulatory scrutiny on the crypto sector.

Trump announced plans to replace Gary Gensler, the current chair of the US Securities and Exchange Commission, a move expected to ease restrictions on cryptocurrency trading and investments.

“The Trump administration’s support for cryptocurrency is significantly increasing demand for crypto assets and related stocks,” said Nick Twidale, chief market analyst at ATFX Global. Justin d'Anethan, head of business development at Keyrock, added, “This surge marks a historic milestone, solidifying Bitcoin’s role as a politically favored and increasingly stable asset.”