Bitcoin has broken through the $90,000 level, continuing its rally on expectations that Donald Trump’s presidency will benefit cryptocurrencies.
The world’s largest cryptocurrency reached record highs on Wednesday, climbing to $93,158, marking a 32% increase since the November 5 election.
Other cryptocurrencies have also seen significant gains. Ether has risen by 37% since election day, while Dogecoin, promoted by Trump ally Elon Musk, has surged by over 150%.
Trump’s campaign promises to make the United States the “crypto capital of the planet” and to build a national stockpile of bitcoin have fueled speculative trading and mining activities.
Although the specifics of these plans remain unclear, the potential for regulatory changes and increased institutional participation has driven market optimism.
MicroStrategy, a software company and major bitcoin investor, announced it had spent about $2 billion buying bitcoin between October 31 and November 10, pushing its shares to a record high.
Crypto investors are hopeful that Trump’s presidency will reduce scrutiny from the Securities and Exchange Commission (SEC). Trump and his sons also launched a new crypto business, World Liberty Financial, in September.
JPMorgan researchers noted that Trump’s re-election could lead to the appointment of a new SEC chair, potentially easing regulatory pressures on the crypto industry. Funds tracking the spot price of bitcoin, such as BlackRock’s iShares Bitcoin Trust, saw gains of nearly 4% on Wednesday.
However, shares in Coinbase, the largest publicly traded crypto exchange, fell by 1.3%, while bitcoin miners Riot Platforms and Marathon Digital Holdings saw declines of 4.08% and 4.68%, respectively.
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