Bitcoin tops $80,000 for the first time on optimism about Trump
The cryptocurrency rose as much as 4.3% to an unprecedented $79,771 on Sunday and remained near $79,000 as of 2:05 p.m. in Singapore. Smaller tokens like Cardano and meme crowd favorite Dogecoin also rallied.
Trump pledged on the campaign trail to make the U.S. a center for the digital asset industry, including establishing a strategic Bitcoin reserve and appointing regulators with an interest in digital assets. He emerged from Tuesday’s election in a stronger position than expected. His Republicans are on the verge of losing control of the Senate and a slim majority in the House.
“With the dust from Trump’s victory still settling, it’s only a matter of time before we see some kind of uptick given the perception that Trump supports cryptocurrencies, and that’s what we’re seeing now,” Le Shi said. . , Hong Kong managing director of market-making firm Auros.
ETMarkets.comETF, Fed
Bitcoin is up about 90% so far in 2024, driven by strong demand for U.S. exchange-traded funds and interest rate cuts by the Federal Reserve. The rise of the biggest digital token, which hit a new record after the US vote, outpaces the returns of investments such as stocks and gold.
ETFs run by BlackRock Inc.’s $35 billion iShares Bitcoin Trust recorded daily net inflows of nearly $1.4 billion on Thursday, according to data compiled by Bloomberg. A day ago, trading volume for the iShares ETF jumped to an all-time high. These are all signs of how Trump’s victory is reshaping cryptocurrency.
Trump’s stance contrasts with President Joe Biden’s crackdown on digital assets. Securities and Exchange Commission Chairman Gary Gensler has repeatedly pointed out that this is an area rife with fraud and misconduct. The agency turned the screws on cryptocurrencies following the 2022 market rout and a series of collapses, most notably the collapse of Sam Bankman-Fried’s fraudulent FTX exchange. Digital asset companies and executives spent heavily during the US election campaign to promote candidates who were friendly to cryptocurrencies. “Trump has promised regulatory support, and passage in the House and Senate makes a cryptocurrency bill much more likely to pass,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.
