Bitcoin reached a historic high on Sunday, soaring past the $80,000 mark amid fervor surrounding the recent U.S. presidential election. The world’s largest cryptocurrency began its ascent in anticipation of Tuesday’s election, spiked further on election night as Donald Trump’s victory became evident, and continued climbing in the days following his win. This surge has invigorated the cryptocurrency market, which many now view as likely to thrive under Trump’s administration.
With an impressive 80% increase this year, Bitcoin’s performance far surpasses the S&P 500’s 25.7% gain. Although Bitcoin briefly touched the $80,000 threshold, it was trading just shy of that milestone by Sunday mid-morning. The rally demonstrates renewed enthusiasm in the crypto sector as Trump’s win is perceived as a signal of support for digital currencies, a stance he has embraced with increasing fervor in recent months.
Trump’s evolving stance on cryptocurrency is notable. Previously, he dismissed Bitcoin and other digital assets as speculative, at one point describing Bitcoin as “based on thin air.” However, his perspective shifted over time, particularly as he and his family became directly involved in the crypto industry. In September, Trump and his children launched World Liberty Financial, a new crypto venture, marking a significant endorsement. During the launch, Trump expressed his confidence in the future of cryptocurrencies, stating, “It’s very young and very growing… I do believe in it.”
Trump’s endorsement stands in stark contrast to the Biden administration’s approach, which has leaned toward stringent regulation and scrutiny of digital assets. Securities and Exchange Commission (SEC) Chairman Gary Gensler, appointed by Biden, famously warned of potential fraud and abuse within the crypto market. In a 2021 speech, Gensler described crypto as a sector “ripe with fraud, scams, and abuses,” and under his leadership, the SEC pursued enforcement actions against crypto companies and individuals accused of illegal trading practices. The commission also collaborated with other regulatory bodies, including the Department of Justice, in efforts to curtail crypto fraud, most notably involving Sam Bankman-Fried, the controversial former CEO of FTX.
Gensler’s approach toward crypto regulation included delaying the approval of a bitcoin exchange-traded fund (ETF), a milestone eagerly anticipated by investors. While the SEC eventually sanctioned the ETF, allowing investors to include cryptocurrency exposure in their retirement accounts, the rollout was cautious. Earlier this year, in a twist that briefly shocked the market, Gensler’s X (formerly Twitter) account was hacked, falsely announcing the bitcoin ETF’s full availability. This misinformation temporarily spiked crypto prices, showcasing the volatile influence of regulatory decisions on the market.
Trump’s vision for cryptocurrencies extends beyond personal investment. In August, he asserted that crypto could “define the future” and advocated for more robust U.S. involvement in digital currency production, urging for it to be “mined, minted, and made in the USA.” His ambitions even include the idea of a strategic national bitcoin reserve—modeled after the U.S. Strategic Petroleum Reserve—as a hedge against global economic risks. Trump’s proposed national stockpile would allow the government to directly purchase and store cryptocurrencies, framing digital assets as integral to national security.
Elon Musk, one of Trump’s most visible allies and an influential figure in the tech world, has also spurred interest in digital currencies. Known for his long-standing enthusiasm for cryptocurrency, Musk has championed Dogecoin, a meme-based coin that has gained significant popularity. Following Trump’s victory, Dogecoin saw a substantial 20% surge on Sunday and has been rallying throughout the week. Musk’s endorsement and Trump’s proposed crypto-friendly policies have energized the crypto community, fostering optimism that the market will continue to grow under the incoming administration.
As the world watches, the U.S. cryptocurrency market faces a potentially transformative period. Trump’s administration promises to redefine the regulatory landscape, bringing digital assets to the forefront of national policy. With rising support from high-profile figures and mounting interest from investors, cryptocurrency may indeed play a pivotal role in shaping America’s financial future.
