Bitcoin reached an unprecedented high of over $80,000 on Sunday, setting a historic record as excitement swept through the cryptocurrency market following Donald Trump’s U.S. presidential victory. Surging in the days leading up to Tuesday’s election, Bitcoin saw a sharp increase on election night when Trump’s win became evident, and it has continued to climb since. The recent price rally has given Bitcoin an annual growth of 80%, eclipsing even the S&P 500’s already impressive gain of 25.7% this year. Though Bitcoin briefly topped $80,000, it settled slightly below that level by mid-morning on Sunday, marking a moment of extraordinary enthusiasm in the crypto sector.
Trump’s administration is expected to bring about a transformative period for digital assets, fostering a more welcoming environment for cryptocurrency—a significant shift from the approach taken by the previous administration. Previously a vocal skeptic, Trump had once dismissed Bitcoin, calling it “based on thin air.” But his stance shifted drastically in recent months, especially after he and his family founded World Liberty Financial, a cryptocurrency-focused venture. At the launch in September, Trump expressed optimism, calling crypto “very young and very growing” and highlighting his belief in its future potential.
Trump’s embrace of cryptocurrency marks a stark contrast to the regulatory stance taken by the Biden administration, which viewed crypto with caution and skepticism. Led by SEC Chairman Gary Gensler, the Biden administration sought to impose tighter controls on the sector. Gensler, a well-known advocate for strict oversight, publicly expressed concern about the risks associated with cryptocurrency, describing the market as “ripe with fraud, scams, and abuses” in a 2021 speech. The SEC, under Gensler’s leadership, launched a series of legal actions against crypto companies and notable figures, most notably Sam Bankman-Fried, the former CEO of the now-defunct FTX. These enforcement actions were aimed at combating fraudulent and illegal practices in the sector, with the SEC collaborating with other regulatory bodies such as the Department of Justice.
One of the most anticipated regulatory decisions under Gensler was the approval of a bitcoin exchange-traded fund (ETF), which would allow mainstream investors to add Bitcoin to their retirement portfolios. Although the SEC eventually sanctioned the ETF, the process was marred by delays. Earlier this year, Gensler’s X account (formerly Twitter) was hacked, falsely announcing the ETF’s launch, briefly causing a spike in crypto prices and illustrating how sensitive the market is to regulatory announcements.
In addition to his newfound financial stake in the industry, Trump has proposed broader policies to integrate digital currencies into the U.S. economy. He has called for the U.S. to become a global leader in crypto production, suggesting that cryptocurrencies should be “mined, minted, and made in the USA.” Trump has also introduced the idea of a strategic national bitcoin reserve, akin to the U.S. Strategic Petroleum Reserve, where the government would stockpile Bitcoin as a hedge against economic instability and enhance national security. This vision signifies a shift towards viewing digital currencies as strategic assets.
Adding to the momentum is Elon Musk, one of Trump’s prominent allies and an ardent supporter of crypto, whose endorsement has further fueled enthusiasm. Known for his support of Dogecoin, Musk’s influence on the digital currency market has been substantial. Following Trump’s win, Dogecoin experienced a surge of over 20% on Sunday, adding to a week of strong gains. Musk’s support and Trump’s pro-crypto administration have raised hopes for a flourishing digital asset market, with industry stakeholders viewing this as a potentially golden age for cryptocurrency in the United States.
This convergence of leadership and support promises to reshape the landscape of digital finance, with Trump’s presidency seen as the catalyst for change. As he assumes office, the cryptocurrency industry is optimistic that his policies will usher in a more inclusive regulatory environment, making crypto a crucial element of the American economy.
