On Tuesday, Bitcoin approached the $90,000 mark, buoyed by a surge of optimism following Donald Trump‘s election as U.S. president, with many anticipating a favorable stance towards cryptocurrency from his administration.
In the week following the election, the largest cryptocurrency has emerged as a significant player, reaching a notable high of $89,637 in Asia. This marks an impressive increase of over 25% since November 5.
Elon Musk‘s automaker, Tesla, is experiencing a significant surge, with shares rising nearly 40% since the announcement of voting results. Investors are optimistic that Trump’s allies and interests will thrive during his presidency.
“It’s evident that this aligns with Trump’s strong support for the industry, which is likely to drive increased demand for cryptocurrency stocks and the currencies themselves,” stated Nick Twidale, chief market analyst at ATFX Global in Sydney.
“Bitcoin’s trading position near all-time highs at the time of the election results indicated a clear path ahead.”
During his campaign, Trump advocated for digital assets, vowing to position the United States as the “crypto capital of the planet” and to amass a national stockpile of bitcoin.
The uncertainty surrounding the timing and method of such an event has sparked a speculative increase in cryptocurrency mining and trading stocks.
Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital, stated, “I think it increases the chances that other nation states buy bitcoin in a bid to front run the U.S.”
“Furthermore, the potential for nationalizing U.S. listed Bitcoin miners could be a significant catalyst for the industry.”
Riot Platforms, a prominent player in the cryptocurrency mining sector, experienced a significant surge of nearly 17% on Wall Street overnight, with additional gains observed in after-hours trading. MARA Holdings and CleanSpark experienced a considerable surge, with their stock prices climbing nearly 30%.
MicroStrategy, a software company and notable investor in bitcoin, revealed that it has invested approximately $2 billion in bitcoin purchases from October 31 to November 10. Shares experienced a significant increase of 26% and continued to rise in after-hours trading.
The excitement permeated the cryptocurrency market as smaller tokens, including ether and the once-humorous dogecoin, experienced significant surges in value.
Crypto investors anticipate a shift in the heightened scrutiny imposed by U.S. Securities and Exchange Commission Chair Gary Gensler, a position former President Trump has indicated he would seek to change. In September, Trump introduced a new cryptocurrency venture named World Liberty Financial.
“What we’re witnessing is not merely a price milestone; it serves as an indication that the market is becoming more receptive to the notion of bitcoin as a more stable, and potentially politically favored, asset,” stated Justin D’Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock.
