(Bloomberg) — Bitcoin is approaching $80,000 for the first time, boosted by President-elect Donald Trump’s embrace of digital assets and the prospect of a Congress with pro-crypto lawmakers.
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The cryptocurrency rose as much as 4.3% to a record $79,771 on Sunday and remained near $79,000 as of 2:05 p.m. in Singapore. Smaller tokens like Cardano and meme-favorite Dogecoin also rallied.
Trump promised during the election campaign to put the United States at the center of the digital asset industry, including creating a strategic Bitcoin reserve and appointing regulators enamored of digital assets. He emerged from Tuesday’s election in a stronger position than expected: His Republican Party has control of the Senate and is on the verge of having a narrow majority in the House.
“With the dust from Trump’s victory still settling, it was only a matter of time before some sort of breakthrough occurred given the perception that Trump was pro-cryptocurrency, and that’s what we’re seeing now,” he said. Le Shi. , Hong Kong CEO of market-making company Auros.
ETF, Federal Reserve
Bitcoin has added about 90% so far in 2024, helped by strong demand for U.S. exchange-traded funds and interest rate cuts by the Federal Reserve. The rise of the largest digital token, which hit new records after the US vote, outpaces returns on investments such as stocks and gold.
The ETFs, powered by BlackRock Inc.’s $35 billion iShares Bitcoin Trust, posted a record daily net inflow of nearly $1.4 billion on Thursday, according to data compiled by Bloomberg. A day earlier, iShares ETF trading volume jumped to an all-time high, all signs of how Trump’s victory is reshaping cryptocurrencies.
Trump’s stance contrasts with the crackdown on digital assets during Joe Biden’s presidency. Securities and Exchange Commission Chairman Gary Gensler repeatedly called the industry rife with fraud and misconduct. The agency tightened the screws on cryptocurrencies following a market crash in 2022 and a litany of crashes, most notably the bankruptcy of Sam Bankman-Fried’s fraudulent FTX exchange.
Digital asset companies and executives spent heavily during the US election campaign to promote candidates seen as favorable to their interests.
“Trump has promised supportive regulation, and victory in the House and Senate makes passage of cryptocurrency bills much more likely,” wrote Noelle Acheson, author of the newsletter Crypto Is Macro Now.