Bitcoin $100,000 after Trump wins US election
Bitcoin approached $90,000 on Tuesday, riding a wave of optimism following Donald Trump’s election as U.S. president, with expectations that his administration will be more supportive of cryptocurrency.
The world’s largest cryptocurrency has become one of the most prominent performers since the election, reaching $89,637 in Asia—a surge of more than 25% since November 5.
Bitcoin trading price rise mirrors the performance of Tesla (TSLA.O), Elon Musk’s automaker, which has gained nearly 40% since the election results, as investors bet that Trump’s allies and interests will thrive during his presidency.
"This is clearly a Trump-driven rally, as he’s very supportive of the industry, which will likely increase demand for both crypto-related stocks and the cryptocurrencies themselves," said Nick Twidale, chief market analyst at ATFX Global in Sydney.
"Bitcoin was already near all-time highs when the election results came in, so it had a clear path to rise even further."
Trump has been a vocal advocate for digital assets during his campaign, promising to make the U.S. the "crypto capital of the planet" and to amass a national bitcoin reserve.
Although the specifics and timeline remain unclear, the prospect has sparked a speculative surge in crypto mining and trading stocks.
"I think Trump’s win raises the possibility that other countries may start buying bitcoin in anticipation of the U.S. doing so," said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital. "It could also be a huge catalyst for U.S.-listed Bitcoin miners, particularly if there's a chance of them being nationalized."
Shares of crypto miner Riot Platforms surged nearly 17% on Wall Street overnight, and continued to rise in after-hours trading. Other miners, such as MARA Holdings (MARA.O) and CleanSpark (CLSK.O), saw gains of nearly 30%.
Software company MicroStrategy (MSTR.O), a major bitcoin investor, revealed it had spent about $2 billion on bitcoin between October 31 and November 10. Its shares rose 26%, with continued gains in after-hours trading.
The enthusiasm extended beyond Bitcoin to smaller tokens, including ether and even the once-joke currency dogecoin, both seeing significant increases.
Crypto investors are also anticipating less regulatory scrutiny under U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has indicated he will replace. In September, Trump launched a new crypto business, World Liberty Financial.
"What we’re witnessing isn’t just a milestone in price, but a signal that the market is warming up to bitcoin as a more stable and politically favored asset," said Justin D'Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock.