The price of Bitcoin reached a new high on Wednesday as investors bet that former President Donald Trump’s victory in the US presidential election would be a boon for cryptocurrencies.
Bitcoin jumped nearly 8% in early trading, rising above $75,000 and smashing the previous record set in March. Other cryptocurrencies also rose, including ether, the second most popular cryptocurrency in the world after bitcoin, which rose 8%.
Trump was previously skeptical of cryptocurrencies, but changed his mind and took a positive view of cryptocurrencies before the election.
He pledged to make America the “cryptocurrency capital of the planet” and create a “strategic reserve” of bitcoin. His campaign accepted cryptocurrency donations, and he courted crypto enthusiasts at a Bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.
Bitcoin is up 77% this year.
“Bitcoin is the one asset that will always rise if Trump returns to the White House,” said Ross Mould, investment director at AJ Bell, a British online investing platform. Having reached a new high, the market is now speculating about “when, not if, it will reach the $100,000 level,” he said.
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“Trump has already declared his love for cryptocurrency, and crypto traders now have a new narrative from which to become more excited about where the price could go,” Mold said.
Cryptocurrency industry participants welcomed Trump’s victory, hoping that he can move forward with the legislative and regulatory changes they have long pushed for.
Trump had already promised that, if elected, he would fire SEC Chairman Gary Gensler, who has been leading the US government’s crackdown on the cryptocurrency industry.
“Tonight, the cryptocurrency voter has spoken decisively — across party lines and in key races across the country,” said Brian Armstrong, CEO of Coinbase, one of the largest cryptocurrency exchanges. “Americans are disproportionately interested in cryptocurrencies and want clear rules of the road for digital assets. We look forward to working with the new Congress to make that happen.”
& Edition 2024 The Canadian Press
