Bitcoin Hits Record High Above $86,000 Amid Optimism Over Pro-Crypto US Policies
Bitcoin surged to an all-time high above $86,000 on Monday, driven by optimism that the cryptocurrency market will thrive under a favorable regulatory environment following Donald Trump's election as US president, alongside pro-crypto candidates taking seats in Congress.
The world’s largest cryptocurrency has more than doubled from its low of $38,505 earlier this year, recently trading at $86,000.
Trump has long been a supporter of digital assets, pledging during his campaign to make the US the “crypto capital of the planet” and build a national bitcoin reserve. While other "Trump trades" – from US stocks to bond shorts – have lost momentum post-election, cryptocurrencies continue to see strong growth.
"Bitcoin's Trump-driven rally is still going strong... With Republicans poised to take control of the House and secure a 'red wave' in Congress, it looks like the crypto community is betting on deregulation," said Matt Simpson, senior market analyst at City Index, referencing the anticipated Republican dominance in both houses.
Simpson also noted that while Trump’s immediate priorities may lie elsewhere, cryptocurrency investors are hopeful that regulatory scrutiny, especially under US SEC Chair Gary Gensler, will ease once Trump takes office. Trump has already stated that he plans to remove Gensler.
The cryptocurrency sector has been actively backing pro-crypto candidates, spending over $119 million on congressional races. This effort has largely paid off, with notable victories in Ohio, Michigan, West Virginia, Indiana, Alabama, and North Carolina, where pro-crypto candidates from both major parties triumphed.
In addition to his political efforts, Trump launched a new crypto venture, World Liberty Financial, in September. While details remain scarce, his involvement in the sector has been positively received by investors. Trump’s son, Eric Trump, an executive vice president of The Trump Organization, is also scheduled to speak at a bitcoin conference in Abu Dhabi next month.
Other cryptocurrencies have also seen strong gains. Ether, the second-largest cryptocurrency, surpassed $3,200 for the first time in over three months, trading at $3,192. Meanwhile, Dogecoin, once a joke currency, has reached a three-year high.
With widespread support from key figures like Trump and billionaire Elon Musk, the future looks promising for the cryptocurrency market as it rides the wave of political support.