(Bloomberg) — Bitcoin rose above $81,000 for the first time, boosted by newly elected President Donald Trump’s embrace of digital assets and the prospect of a Congress with pro-crypto lawmakers.
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Trump was declared the winner in Arizona, sweeping the seven US battleground states. His decisive victory in the presidential election has prompted celebratory chest-thumping from the digital asset industry, which has spent more than $100 million backing a range of crypto-friendly candidates.
The largest token rose as much as 6.1% on Sunday, reaching an unprecedented $81,497 early in Asia on Monday before changing hands to $80,835 as of 9:30 a.m. in Singapore. The bullish sentiment also fueled a rise in smaller coins, including a rise in Dogecoin, a meme crowd favorite promoted by Trump supporter Elon Musk.
“With the dust still settling from Trump’s victory, it was only a matter of time before some sort of run-up would happen given the perception that Trump is pro-crypto, and that’s what we’re seeing now,” Le said Shi. , Hong Kong-based Managing Director at market-making company Auros.
Trump’s Agenda
Trump promised during his campaign to put the US at the center of the digital asset industry, including creating a strategic Bitcoin stockpile and appointing regulators enamored with digital assets. Cheerful traders are currently paying little attention to questions such as the speed of likely implementation or whether a strategic stockpile is a realistic possibility.
His broader agenda of boosting domestic economic growth, cutting taxes and cutting red tape has led to a buying spree in stocks, credits and crypto. The S&P 500 stock index reached its 50th record this year last week.
Bitcoin has added about 93% so far in 2024, helped by robust demand for specialty US exchange-traded funds and interest rate cuts by the Federal Reserve. The token’s rise, which hit new records after Tuesday’s US vote, has outpaced the returns of investments such as stocks and gold.
The ETFs, powered by BlackRock Inc.’s iShares Bitcoin Trust. worth $35 billion, posted record daily net inflows of nearly $1.4 billion on Thursday, according to data compiled by Bloomberg. A day earlier, the iShares ETF’s trading volume jumped to a record high — all signs of how Trump’s victory is reshaping the crypto world.
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