Bitcoin tops $82,000 level in early Monday trading

11th Nov 2024 07:22

(Sharecast News) - Bitcoin has surged well past the $80,000 mark for the first time, propelled by investor optimism following Donald Trump's US election victory, with expectations that his administration would support a friendlier regulatory environment for digital currencies.

The world's leading cryptocurrency peaked at $82,197 early on Monday, marking a sharp increase of nearly 20% since election day, before falling back to just above $81,000.

Trump's recent embrace of cryptocurrencies - a notable shift from his previous dismissals of Bitcoin as a "scam" - had fuelled speculation of pro-crypto reforms under his administration.

The president-elect's son, Donald Trump Jr, also endorsed digital assets, describing them as an alternative to traditional financial systems, which he claimed disadvantaged conservative investors.

Trump's support had extended into family ventures, including his backing of the cryptocurrency platform World Liberty Financial, launched in September, which had drawn both support and scrutiny over potential conflicts of interest should the administration pursue deregulation.

The broader cryptocurrency market was mirroring Bitcoin's momentum, with assets like Ethereum and Dogecoin seeing significant gains - Ethereum rose nearly 29% over the last week, while Dogecoin surged 83%.

Market enthusiasm had spilled into related stocks, notably Coinbase, which had seen its share price climb 50% over the past five days.

Investor sentiment around Bitcoin's trajectory remained bullish, with some analysts predicting prices could surpass $100,000, driven by an expectation of reduced regulatory pressures.

Trump previously criticised the US Securities and Exchange Commission's strict approach to cryptocurrency regulation under the Biden administration, and pledged to fire current SEC chairman Gary Gensler, who had implemented over 100 regulatory actions against crypto firms.

His campaign also attracted endorsements from major crypto advocates, including investors like Cameron and Tyler Winklevoss and venture capitalist Marc Andreessen.

In addition to Trump's victory, pro-crypto candidates performed well in down-ballot races as Republicans flipped control of the Senate and retained a strong position in the House of Representatives.

Stand With Crypto, a non-profit advocacy group, reported that 268 pro-crypto candidates were elected to the House, along with 19 senators.

Reporting by Josh White for Sharecast.com.