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Bitcoin reached a new record high on Monday, continuing its upward trajectory in the wake of Donald Trump’s recent election victory. The leading cryptocurrency surged over 12%, peaking at $89,174, as reported by Coin Metrics. It briefly touched a maximum of $89,623 during the day.
Ether also saw a significant rise, climbing more than 7% to $3,371.79 after experiencing a 30% increase over the past week, which allowed it to surpass the $3,000 threshold over the weekend.
Other cryptocurrencies followed suit, with the decentralised finance token associated with Cardano rising by 4.7%, while Dogecoin experienced a remarkable increase of nearly 24%. In traditional stock trading on Monday, Coinbase’s shares closed up by 19.8%, and MicroStrategy’s stock jumped more than 25.7%. Both companies continued to see gains in after-hours trading as well.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented on the current market dynamics, indicating that the ongoing rally in cryptocurrencies is fueled by a sense of “euphoria” following Trump’s electoral win last week.
“His pledge to go all in on crypto has sent Bitcoin to fresh heady heights,” she stated.
Streeter elaborated that Trump has shifted his stance to support the cryptocurrency sector, promising to transform the U.S. into “the crypto capital of the world.” This led Bitcoin investors to anticipate a more favourable regulatory environment and speculate on the establishment of a reserve fund for cryptocurrencies, which could stimulate demand further.
During his campaign, Trump made several commitments to the crypto industry, including his intention for all Bitcoin mining to occur within U.S. borders and his goal to replace U.S. Securities and Exchange Commission Chairman Gary Gensler—known for his stringent regulatory approach towards cryptocurrencies—despite lacking the authority to do so.
Meanwhile, Citi strategists pointed out that cryptocurrencies have remained one of the few sectors benefiting from Trump’s election. They noted that this is largely due to expectations surrounding a more crypto-friendly administration that could lead to clearer regulations in the U.S.
Furthermore, they highlighted inflows into spot crypto ETFs since the election results were announced, with net inflows for Bitcoin and Ether ETFs reaching $2.01 billion and $132 million respectively in just two days post-election.
Many analysts are optimistic about the continued rise of cryptocurrencies, with some predicting Bitcoin could reach $100,000 by year-end.