Bitcoin nearly hit the $90,000 mark on Tuesday, driven by optimism surrounding Donald Trump’s recent election as U.S. president, as investors anticipate a crypto-friendly administration. The cryptocurrency reached $89,637 in Asia, marking a 25% increase since November 5. This surge aligns with gains in Tesla’s stock, up nearly 40% since the election, as investors expect Trump’s allies and interests to benefit during his term.
Nick Twidale, chief market analyst at ATFX Global, described the rally as a “clear Trump trade,” highlighting Trump’s support for the crypto industry as a likely factor driving demand for both crypto stocks and currencies. With Bitcoin already trading near all-time highs before the election, Trump’s crypto-positive stance created strong upward momentum. During his campaign, Trump pledged to make the U.S. the “crypto capital of the planet” and hinted at building a national Bitcoin reserve, fueling speculative interest in crypto mining and trading stocks.
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Matthew Dibb, CIO at Astronaut Capital, noted that Trump’s stance might prompt other nations to invest in Bitcoin to stay competitive. This potential policy shift could also benefit U.S.-listed Bitcoin miners, with possibilities of state support. Riot Platforms surged nearly 17% on Wall Street, and other miners, including MARA Holdings and CleanSpark, jumped by almost 30%.
MicroStrategy, a major Bitcoin investor, revealed it had acquired $2 billion in Bitcoin between October 31 and November 10, boosting its stock by 26%. Other cryptocurrencies, like ether and dogecoin, also saw gains as excitement spread across the market.
Crypto investors expect an easing of regulatory pressure, particularly with Trump’s commitment to replace SEC Chair Gary Gensler. Trump also recently launched World Liberty Financial, a new crypto business, further signaling his support for digital assets. Justin D’Anethan, head of Asia-Pacific business development at Keyrock, remarked that Bitcoin’s climb signals growing market acceptance of Bitcoin as a stable and politically supported asset.
