Bitcoin surged to a record high above $81,000 on Monday, driven by expectations of a crypto-friendly regulatory environment following the election of Donald Trump as U.S. president along with pro-crypto Congressional candidates.
The world’s largest cryptocurrency has now more than doubled from this year’s low of $38,505 and recently traded at $81,572 after reaching a record $81,899 earlier in the day.
During his campaign, Trump voiced strong support for digital assets, pledging to make the U.S. the “crypto capital of the planet” and to build a national bitcoin reserve.
While other so-called “Trump trades” — such as gains in U.S. stocks and bond shorts — have lost some momentum since the election, the rally in cryptocurrencies has shown no sign of slowing down.
“Bitcoin’s Trump-pump is alive and well,” said Matt Simpson, senior market analyst at City Index. “With Republicans on the verge of taking the House, the crypto community seems optimistic about digital currency deregulation,” he added, alluding to a potential Republican majority in Congress.
Although Simpson noted Trump’s initial focus may be elsewhere, crypto investors are hopeful for a relaxation of regulatory oversight, particularly from U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has said he plans to dismiss.
The crypto industry invested more than $119 million supporting pro-crypto candidates in Congress and saw significant victories. In Ohio, longtime crypto opponent and Senate Banking Committee Chair Sherrod Brown was unseated, while pro-crypto candidates from both parties won in Michigan, West Virginia, Indiana, Alabama, and North Carolina. In September, Trump also launched World Liberty Financial, a crypto business that, though lacking details, has signaled his personal interest in the sector.
Elon Musk, a major Trump ally and avid supporter of cryptocurrencies, has further fueled optimism. Eric Trump, the president-elect’s son and executive vice president of The Trump Organization, is scheduled as a keynote speaker at a bitcoin conference in Abu Dhabi next month, according to event organizers.
Cryptocurrency gains have been widespread. Ether climbed above $3,200 for the first time in over three months, trading recently at $3,192, while Dogecoin, a meme-inspired cryptocurrency, hit a three-year high.
