Bitcoin surges past $81,000 mark for the first time
What's the story
Bitcoin, the world's largest cryptocurrency, has seen a massive spike in value, breaching the $81,000 mark for the first time. The spike was first recorded at 6.1% on Sunday, and then further extended to an unprecedented $81,497 early today in Asia. The bullish trend also lifted other cryptocurrencies such as Dogecoin, a favorite among meme enthusiasts and US President-elect Donald Trump supporters like Elon Musk.
Election impact
Trump's victory fuels cryptocurrency market
The recent Bitcoin surge can largely be credited to Trump's endorsement of digital assets and a US Congress full of crypto-friendly lawmakers. Trump's clean sweep in the presidential elections, including a clean sweep of seven US battleground states, has sent the digital asset industry into a frenzy. The industry had pumped over $100 million supporting different candidates who are friendly toward cryptocurrencies.
Market response
Trump's stance drives market optimism
Commenting on the post-election scenario, Le Shi, Hong Kong managing director at Auros, said, "With the dust from Trump's victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto." During his campaign, Trump promised to put the US at the forefront of the digital asset industry and proposed measures like creating a strategic Bitcoin reserve.
Market performance
Bitcoin outperforms traditional investments in 2024
So far in 2024, Bitcoin has surged nearly 92%, fueled by robust demand for dedicated US exchange-traded funds (ETFs) and Federal Reserve interest rate cuts. The rise exceeds returns from conventional investments such as stocks and gold. The ETFs, supported by BlackRock's $35 billion iShares Bitcoin Trust, witnessed a record daily net inflow of nearly $1.4 billion on Thursday, further highlighting how Trump's victory is reshaping the crypto landscape.
Policy shift
Trump's pro-crypto stance marks shift from Biden's approach
Trump's supportive stance on cryptocurrencies is a stark contrast to President Joe Biden's administration, which had adopted a stricter approach toward the sector. Securities & Exchange Commission Chairperson Gary Gensler had often slammed the industry for being rife with fraud and misconduct. But after his election victory, Trump has promised to introduce industry-friendly regulations and help it grow.