Bitcoin soared to a new all-time high of $75,389 on Wednesday, as cryptocurrency investors celebrated the anticipated victory of Donald Trump in the 2024 U.S. presidential election. The world’s largest digital currency surpassed its previous peak of $73,803.25, reached in March, after Trump’s significant wins in key swing states, including Pennsylvania, North Carolina, and Georgia, brought him closer to reclaiming the presidency.
Trump, who has positioned himself as a pro-crypto candidate, has vowed to turn the U.S. into a “bitcoin superpower,” promising to dismantle the regulatory obstacles that crypto companies have faced under the current administration. This stance has attracted strong support from prominent figures in the cryptocurrency sector, including venture capital firm Andreessen Horowitz and Gemini co-founders Tyler and Cameron Winklevoss.
Kris Marszalek, CEO of Crypto.com, expressed confidence in the future of cryptocurrency, saying, “The future of crypto has never looked brighter than today.” Tyler Winklevoss similarly celebrated the shift, calling it “the brink of a new American Renaissance,” and declaring, “The crypto army is striking!”
Altcoins Follow Bitcoin’s Surge
Bitcoin’s rally has also had a positive impact on other cryptocurrencies. Ether, the second-largest cryptocurrency, climbed 8.6% to reach $2,622, while Solana gained 11%, rising to $184. Even Dogecoin, the meme-based coin championed by Elon Musk, saw a 16% surge, reaching 20 cents.
Crypto advocates believe Trump’s potential victory will pave the way for clearer and more favorable regulations for digital assets. Brian Armstrong, CEO of cryptocurrency exchange Coinbase, said, “Tonight the crypto voter has spoken decisively. Americans care about crypto and want clear rules for digital assets.”
Crypto Industry Hopes for a Regulatory Shift
The cryptocurrency industry has been watching closely, hoping that a Trump presidency will lead to a more favorable regulatory environment. One of the major points of contention is Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), whose enforcement actions have been widely criticized within the crypto community. Under Gensler’s leadership, the SEC has filed lawsuits against major crypto firms, including Coinbase, Kraken, and Ripple Labs, prompting calls for his removal.
Trump has pledged to remove Gensler from his post if elected, a promise that has been met with enthusiasm from crypto supporters. Matt Hougan, Chief Investment Officer of Bitwise, a cryptocurrency fund manager, noted, “The market is gaining confidence by the minute that it will face a more neutral or even positive regulatory environment under a Trump administration.”
Trump’s Influence Boosts Crypto Mining Stocks
Trump’s stance on cryptocurrency has also helped fuel a rise in stocks for crypto mining companies, many of which stand to benefit from his pro-Bitcoin policies. Riot Platforms, Marathon Digital, and Core Scientific saw their shares increase by 7.5% to 11.5% in pre-market trading, driven by hopes that Trump’s policies would favor Bitcoin mining in the U.S.
Jake Ostrovskis, a trader at crypto market maker Wintermute, stated that a Republican victory would likely lead to “greater chances of crypto-related bills passing in Congress,” further fueling the optimism within the crypto market.
Institutional Investment and ETF Inflows Boost Bitcoin
Bitcoin’s price surge is also being fueled by growing institutional interest. U.S.-based exchange-traded funds (ETFs) that invest directly in Bitcoin have seen significant inflows in recent weeks. BlackRock’s Bitcoin ETF, for example, has raised over $2.4 billion in the past week alone, bringing its total assets under management to more than $29 billion.
Despite a brief dip in the price of Bitcoin earlier this year, when it fell below $50,000 after President Joe Biden abandoned his re-election bid, the cryptocurrency has seen a strong rebound over the past two months. The recovery mirrors the rise in Trump’s media company’s stock, which has served as an unofficial gauge of his political momentum.
Trump’s New Crypto Venture Gains Traction
In addition to his political campaign, Trump has been promoting a new cryptocurrency project called World Liberty Financial, a decentralized finance (DeFi) platform that has raised $14.7 million by selling non-tradable tokens. While the project has faced skepticism due to concerns over the lack of ownership rights associated with its tokens, it nonetheless highlights Trump’s growing ties to the crypto industry.
Some industry executives have raised concerns that such projects could undermine efforts to rebuild trust in the cryptocurrency space, which has suffered from high-profile collapses and frauds in recent years. However, many crypto insiders believe Trump’s influence could bring positive changes, such as clearer regulations and more legitimacy for the market.
Bitcoin’s Record-Breaking Surge
As the election continues to unfold, Bitcoin’s record-breaking price underscores the high stakes for both cryptocurrency investors and the broader financial system. With Trump’s pro-crypto policies gaining momentum, the cryptocurrency market is closely watching the results, hoping for a regulatory environment that could help the sector continue to grow.
As Bitcoin hits new highs and altcoins follow suit, the crypto community remains hopeful that a Trump presidency could mark the beginning of a new era for digital assets in the U.S. With major players in the sector rallying behind him, the potential for a Bitcoin-friendly future has never seemed brighter.
