Bitcoin crosses $80,000 mark for first time ever
What's the story
Bitcoin broke the $80,000 barrier for the first time ever, reaching a peak of $80,071.17 around 5:30 PM IST, as per CoinMarketCap. The rally is largely due to President-elect Donald Trump's supportive attitude toward cryptocurrencies and a Congress full of crypto-friendly lawmakers. While Bitcoin has since retraced slightly, trading around $79,430, this milestone marks a significant turning point in the cryptocurrency market.
Campaign commitments
Trump's pro-Crypto promises boost Bitcoin
During his campaign, Trump had promised to put the US at the forefront of the digital asset industry. His plans involve creating a strategic Bitcoin reserve and appointing pro-digital asset regulators. After Tuesday's election, Trump's Republican Party now holds the Senate and is on the verge of clinching a narrow majority in the House. This political development is considered good for crypto policies.
Expert insights
Market experts weigh in on Bitcoin's surge
Le Shi, Hong Kong managing director at market-making firm Auros, weighed in on the post-election crypto market trend. He 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." This year alone, Bitcoin has surged about 90%, fueled by strong demand for dedicated US exchange-traded funds (ETFs) and interest rate cuts by the Federal Reserve.
ETF performance
Bitcoin ETFs witness record inflows post-election
Notably, the performance of Bitcoin ETFs, especially BlackRock Inc.'s $35 billion iShares Bitcoin Trust, has been remarkable after the US election. On Thursday, the trust saw a record daily net inflow of nearly $1.4 billion according to Bloomberg data. The previous day, the iShares ETF's trading volume hit an all-time high, highlighting how Trump's victory is transforming the crypto landscape. Standard Chartered has predicted that Bitcoin could hit $200,000 (roughly ₹1.5 crore) by the end of 2025.
Policy contrast
Trump's approach differs from Biden's crypto crackdown
Trump's approach to digital assets is a stark contrast to President Joe Biden's administration, which had started cracking down on them. Securities & Exchange Commission Chair Gary Gensler had repeatedly called the sector rife with fraud and misconduct. The agency tightened its grip on crypto after a 2022 market rout and several collapses, including the bankruptcy of Sam Bankman-Fried's fraudulent FTX exchange.