Bitcoin surpassed the $80,000 mark for the first time, reaching A$122,894 on Sunday. This all-time high comes as investor confidence soars following Trump’s re-election.
Bitcoin’s 80% gain in 2024 far outpaces the S&P 500’s 25.7% gain this year. The demonstration began during the run-up to the elections. Trump’s policies signal a significant shift away from the Biden administration’s restrictive stance, suggesting a shift toward regulatory leniency for digital assets.
Under President Joe Biden, the Securities and Exchange Commission (SEC), led by Chairman Gary Gensler, has enforced stringent regulations on the cryptocurrency industry, citing fraud and compliance issues. Gensler has led lawsuits against major cryptocurrency exchanges.
In stark contrast, Trump pledged to fire Gensler on his first day in office. The election also saw Senate Banking Chairman Sherrod Brown, a noted cryptocurrency critic, vote in favor of pro-crypto candidate Bernie Moreno.
Trump’s commitment to supporting digital assets marks a significant shift from his previous skepticism. It launched World Liberty Financial in September, underscoring its newfound confidence in the sector’s potential. “It’s very young and growing,” Trump said at the launch. “I believe it.” His administration plans to establish a strategic national Bitcoin reserve and appoint pro-crypto regulators to lead key agencies.
The cryptocurrency industry at large played an active role in shaping this political shift, investing tens of millions of dollars to support candidates who supported looser regulations. Political action committees like Fairshake and related groups have received substantial donations from cryptocurrency companies, including Coinbase and Ripple, to support candidates who favor a looser regulatory approach.
The changing political climate had immediate effects on the market. BlackRock’s iShares Bitcoin Trust reported daily net inflows of $1.4 billion in early November, while VanEck’s Bitcoin ETF on the ASX reported record trading volumes. Caroline Bowler, CEO of BTC Markets, has noticed an uptick in activity, saying: “People who haven’t traded on our platform since 2019 are now returning to the market.”
The optimism has also spread to other digital assets, with gains recorded in Ethereum, Dogecoin and Solana. Analysts like Bitwise CEO Hunter Horsley predict that Bitcoin’s rally could extend further, potentially reaching $100,000.
There remains a certain caution. However, the overall sentiment is positive.