Bitcoin Tops $80,000 for First Time on Trump Optimism - BNN Bloomberg

(Bloomberg) — Bitcoin is approaching $80,000 for the first time, boosted by President-elect Donald Trump’s embrace of digital assets and the prospect of a Congress featuring pro-cryptocurrency lawmakers.

The cryptocurrency rose as much as 4.3 percent on Sunday to an unprecedented $79,771 and remained around $79,000 as of 2:05 pm in Singapore. Smaller tokens like Cardano and meme crowd favorite Dogecoin also rebounded.

Trump promised on the campaign trail that he would put the United States at the center of the digital asset industry, including creating a strategic Bitcoin stockpile and appointing regulators keen on digital assets. He emerged from Tuesday’s elections in a stronger position than expected; His Republican Party maintains control of the Senate and is on the verge of having a narrow majority in the House of Representatives.

“With the dust still settling on Trump’s victory, it was only a matter of time before some sort of rally occurred given the perception that Trump is pro-cryptocurrency, and that’s what we’re seeing now,” Le Shi said. , managing director of Hong Kong market-making firm Auros.

ETFs, Fed

Bitcoin is up nearly 90% so far in 2024, helped by strong demand for private US exchange-traded funds and rate cuts by the Federal Reserve. The increase in the largest digital token, which broke new records after the US vote, exceeds the returns from investments such as stocks and gold.

ETFs backed by BlackRock Inc.’s $35 billion iShares Bitcoin Trust posted record daily net inflows of nearly $1.4 billion on Thursday, according to data compiled by Bloomberg. The day before, the trading volume of the iShares ETF had reached an all-time high; These were all signs of how Trump’s victory is reshaping crypto.

Trump’s stance contrasts with a crackdown on digital assets under President Joe Biden. Securities and Exchange Commission Chairman Gary Gensler has repeatedly described the industry as rife with fraud and abuse. The agency turned to crypto following the market debacle and series of crashes in 2022, most notably the collapse of Sam Bankman-Fried’s rogue FTX exchange.

Digital asset companies and their executives spent heavily during the US election campaign to support candidates deemed to be in their interests.

“Trump has promised supportive regulation, and sweeps of the House and Senate make passage of crypto bills much more likely,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.

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