Expectations that cryptocurrencies will flourish in a favourable regulatory environment after Donald Trump was elected president of the United States and pro-crypto candidates were elected to Congress caused Bitcoin to rocket to a record high above $81,000 on Monday.
The world’s largest and most well-known cryptocurrency has more than doubled since its low of $38,505 earlier this year. It was recently at $81,572 after reaching a record high of $81,899.
During his campaign, Trump embraced digital assets, vowing to build a national bitcoin stockpile and turn the US into the “crypto capital of the planet.”
Other so-called ‘Trump trades’, such as shorting bonds and U.S. stocks, have slowed since the election, but cryptocurrencies have not.
Regarding Republican control of both houses, Matt Simpson, senior market analyst at City Index, stated, “Bitcoin’s Trump-pump is alive and well… With Republicans on the cusp of taking the house to confirm a red wave in Congress, it seems the crypto crowd is betting on digital-currency deregulation.”
Crypto investors see an end to more monitoring under U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has threatened to fire, even if Simpson cautioned that Trump’s short-term objectives will likely lie elsewhere.
Pro-crypto congressional candidates have received over $119 million from the cryptocurrency business, and they have largely been successful.
While pro-crypto politicians from the Democratic and Republican parties won in Michigan, West Virginia, Indiana, Alabama, and North Carolina, Senate Banking Committee Chair Sherrod Brown, one of the crypto industry’s fiercest congressional opponents, was removed from office in Ohio.
In September, Trump also announced World Liberty Financial, a new cryptocurrency company. Despite the lack of information about the company, investors have interpreted his engagement in the industry as a positive indication.
Elon Musk, a billionaire and a key Trump supporter, is also an advocate of cryptocurrencies.
The organizers of a Bitcoin conference in Abu Dhabi next month have announced that Eric Trump, one of the president-elect’s sons and executive vice president of his private company, The Trump Organisation, will be the keynote speaker.
Cryptocurrency gains have been widespread. On Monday, ether hit $3,200 for the first time in over three months, and it last traded at $3,192. Dogecoin, an alternative cryptocurrency that started off as a mocking critique of the 2013 crypto craze, reached a three-year high.
