Bitcoin soared to a new record high of $80,000 for the first time on Sunday, fueled by expectations that Donald Trump’s potential return to the White House would benefit the cryptocurrency sector.
Since Donald Trump, the Republican candidate, won last Tuesday’s U.S. presidential election, the value of digital currency has steadily increased. Anticipation that he will relax regulations on digital currencies has buoyed market sentiment.
Charles Morris, an analyst at investment firm ByteTree, told AFP, “The likelihood that Bitcoin and crypto will become a significantly larger asset class has increased markedly.”
By Wednesday, Bitcoin had climbed to $75,000, breaking its previous record of $73,797.98 set in March.
Stephane Ifrah from the French crypto asset management firm Coinhouse predicted a sustained bullish trend. “We shouldn’t expect this bullish trend to be interrupted for a long time—about a year. My next target is $100,000,” he stated.
Trump, who during his first term called cryptocurrencies a scam, has notably shifted his stance. He now pledges to make the United States the “bitcoin and cryptocurrency capital.” He has proposed appointing tech magnate Elon Musk to lead a comprehensive audit of governmental waste.
His previous administration’s corporate tax cuts increased market liquidity, spurring investments into high-growth assets like cryptocurrencies.
In September, Trump revealed plans to launch a digital currency platform called World Liberty Financial, which he founded with his sons and other entrepreneurs. However, the platform experienced a tepid sales launch earlier this month, with only a small portion of its tokens finding buyers.
Cryptocurrencies have consistently made headlines for their extreme volatility and the dramatic collapses of several industry giants, including the FTX exchange platform.
Leading up to the election, reports indicated that Trump became the first former president to use Bitcoin for a transaction, purchasing burgers at a New York City restaurant in what many celebrated as a “historic transaction.” Bitcoin trading operates continuously, including on Sundays.
