Key Points
- Bitcoin surged near $90,000 following Trump’s election. It is nearing an all-time high amid expectations of crypto-friendly policies.
- Investors believe Trump’s stance on cryptocurrency will drive demand for digital assets and crypto stocks.
- Riot Platforms, MARA Holdings, and CleanSpark see substantial gains as investors anticipate U.S. Bitcoin mining expansion.
- Trump’s anticipated changes at the SEC could lead to reduced scrutiny, encouraging further crypto investment.
Bitcoin surged to nearly $90,000 on Tuesday, riding a wave of optimism following Donald Trump’s recent U.S. presidential election victory. Investors expect that his administration will adopt a supportive stance on cryptocurrencies, driving the value of Bitcoin to a record high of $89,637 in Asian trading—a 25% increase since November 5. Alongside Bitcoin, shares of Tesla, Elon Musk’s automaker, also surged, reflecting broader confidence in assets believed to align with Trump’s anticipated pro-business and pro-crypto policies.
The Bitcoin rally is part of a “Trump trade” trend, with investors speculating that Trump’s crypto-friendly stance will increase demand for digital assets and crypto-related stocks. According to Nick Twidale, Chief Market Analyst at ATFX Global, Bitcoin was well-positioned to break new records after the election, capitalizing on Trump’s vocal support of digital currencies and his pledge to make the U.S. the global center for cryptocurrency.
Trump’s campaign promises included accumulating a national reserve of Bitcoin, a speculative policy that has fueled optimism in the crypto market. His support for cryptocurrency has also sparked a wave of activity in crypto miners’ and related companies’ stocks. Matthew Dibb, Chief Investment Officer at Astronaut Capital, suggests that the U.S. could prompt other nations to acquire Bitcoin to stay competitive, which could catalyze the U.S.-based Bitcoin mining sector, possibly even leading to the nationalization of such entities.
Major crypto mining stocks responded strongly, with Riot Platforms climbing 17% on Wall Street, while MARA Holdings and CleanSpark jumped nearly 30%. Meanwhile, Bitcoin investor and software company MicroStrategy disclosed that it had acquired an additional $2 billion worth of Bitcoin between October 31 and November 10, sending its stock up 26%.
The excitement is spilling into the broader cryptocurrency market, with popular tokens like Ether and Dogecoin also making significant gains. Crypto investors expect a friendlier regulatory environment, especially with Trump’s promise to replace SEC Chair Gary Gensler, who had implemented increased oversight of the crypto sector. Trump’s newly launched crypto venture, World Liberty Financial, announced in September, further signals his commitment to the industry.
Justin D’Anethan, head of Asia-Pacific business development at Keyrock, sees Bitcoin’s rally as more than a price milestone. According to him, the market views Bitcoin as a potentially more stable and politically favorable asset, indicating a significant shift in investors’ perception.
