Samuel Indyk and Gertrude Chavez-Dreyfuss
LONDON/NEW YORK (Reuters) – Bitcoin rose to a record high above $87,000 on Monday in a surge amid expectations that cryptocurrencies will thrive in a relaxed regulatory environment following the election of Donald Trump as U.S. president and pro-crypto congressional candidates.
The world’s largest and best-known cryptocurrency has more than doubled from this year’s low of $38,505 and recently hit $87,079, up almost 9% from overdue Sunday, having previously hit a record high of $87,460 dollars.
U.S.-listed cryptocurrency stocks have also surged along with the cryptocurrency exchange Global coinbase (NASDAQ:) jumped 22% and iShares Trust jumped 13%.
Cryptocurrency miner Riot Platforms (NASDAQ:) rose 19%, while MicroStrategy, one of bitcoin’s largest corporate backers, gained almost 24%.
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and build up a national stockpile of bitcoin.
“The 2024 U.S. election result is a renaissance moment for the cryptocurrency industry,” Jeff Dorman, chief investment officer and co-founder of asset management firm Arca, said in a research note.
“Crypto events of this level of significance are rare. When they take place, they immediately expand the world’s collective view of the potential of the crypto movement and where this technology will lead the world in the future.”
Short sellers of cryptocurrencies and blockchain-related stocks have suffered hefty losses since November 6, after bitcoin surged to record highs. Total short-selling losses on Coinbase, cryptocurrency miners Riot Platforms and MARA Holdings, as well as blockchain farm operator Bitfarms were approximately $1.2 billion as of the end of November 8.
END OF CRYPTO CONTROL
Cryptocurrency investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chairman Gary Gensler, whom Trump has said he will replace.
The cryptocurrency industry has spent over $119 million supporting pro-crypto congressional candidates, many of whom won their races.
In Ohio, one of the crypto industry’s biggest foes in Congress – Senate Banking Committee Chairman Sherrod Brown – was ousted, while pro-crypto candidates from both the Democratic and Republican Parties won in Michigan, West Virginia, Indiana, Alabama and North Carolina.
In September, Trump also unveiled a recent crypto company, World Liberty Financial. Although there were few details about the activity, investors saw his personal interest in the sector as a growth signal.
Billionaire Elon Musk, Trump’s main ally, is also a supporter of cryptocurrencies.
Eric Trump, one of the president-elect’s sons and executive vice president of his private conglomerate the Trump Organization, will be the keynote speaker at a bitcoin conference next month in Abu Dhabi, according to event organizers.
“The incoming Trump administration could lead to accelerated regulatory transparency, increased institutional participation, better market infrastructure, and broader mainstream adoption,” he added. Deutsche Bank (ETR:) – said analyst Marion Laboure.
“Trump’s pragmatic approach marks a clear departure from recent regulatory restrictions.”
Since Trump’s election victory, the inflow of funds into funds listed on the cryptocurrency exchange has also increased. As of Thursday, November 7, Bitcoin ETFs recorded their largest-ever net inflow of $1.38 billion. Citigroup (NYSE:).
Cryptocurrency gains have been broad-based. hit a more than three-month high above $3,350.70 and last hit $3,318.42, up 4.6%. , an alternative cryptocurrency that began as a satirical critique of the cryptocurrency craze in 2013, has surged to a three-year high.
“Bitcoin will rise significantly higher between now and the end of 2025.” Anthony Pompliano, founder and CEO of Professional Capital Management, said on Monday. “It is difficult to find a compelling argument for a bearish or restrained approach at this point.”
Pompliano has been a major investor in the cryptocurrency space over the past few years.
