Bitcoin nears the level of US$90,000, gaining over 25% since Donald Trump's US presidential election win was declared. Bitcoin reached the highest price at US$89,637 in Asia this week, after the November 5, 2024 election results were announced. The surge is a result of investor optimism that the Trump administration will be favourable for the crypto market.
Analysts are calling the price surge, the ‘Trump trade’, referring to the former president’s pro-crypto stance during his campaigns.
Trump's promise to make America the "crypto capital of the planet" and his proposal for a national reserve of Bitcoin have filled the air with speculative talk in the crypto market. However, scant details exist on how and when that might happen. Surely, though the talk of a crypto-friendly administration has had a profound impact on Bitcoin's price.
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According to Nick Twidale, chief market analyst at ATFX Global in Sydney, “Trump is very supportive of the crypto industry, and this will likely lead to more demand for both cryptocurrencies and crypto stocks,” said.
Other major cryptocurrencies and stocks tied to the cryptocurrency market have risen. Tesla, led by Trump supporter Elon Musk, is up by nearly 40% since the election. This surge is because investors continue to bet on companies with ties to the current US presidential election winner.
In the bitcoin miners' case, the stocks are high with the firm's Riot Platforms and MARA Holdings has grown a phenomenal amount in stocks. Riot Platforms gained nearly 17% in one trading session while the stocks of CleanSpark and MicroStrategy shot up substantially.
Speculation over the prospective crypto policies of Trump rekindled the discussion on Bitcoin being the politically preferred and stable asset. Trump also talked about his intentions to replace SEC Chair Gary Gensler who has been severely rebuked due to his intense scrutiny of the crypto market.
As the Bitcoin rally continues, investors are keenly watching the crypto-related initiatives that Trump is going to employ, which will dictate the future of digital assets in the US.