Bitcoin Nears Historic $80,000 Milestone On Optimism Surrounding Trump’s Pro-Crypto Policies

Jibran Munaf
Jibran Munaf

Image: V-graphix | Istock | Getty Images

Bitcoin is on the brink of reaching $80,000, driven by investor optimism over President-elect Donald Trump’s supportive stance on digital assets and a pro-crypto Congress.

Bitcoin’s Record Rally

The cryptocurrency surged as much as 4.3% to an all-time high of $79,771 on Sunday, holding steady around $79,000 in afternoon trading in Singapore. Smaller cryptocurrencies like Cardano and meme-inspired Dogecoin also saw significant gains.

Trump’s Pro-Crypto Stance

Trump’s campaign promises to prioritize the digital asset industry have fueled Bitcoin’s climb. He has pledged to create a national Bitcoin stockpile and appoint regulators who are favorable toward crypto, positioning the U.S. as a global digital-asset hub. His post-election standing appears strong, with Republicans maintaining control of the Senate and poised to secure a narrow House majority.

Impact of ETFs and Federal Reserve Policies

Bitcoin’s value has jumped approximately 90% in 2024, buoyed by demand for U.S.-based exchange-traded funds (ETFs) and Federal Reserve rate cuts. The BlackRock-backed iShares Bitcoin Trust, valued at $35 billion, recently experienced a record daily net inflow of nearly $1.4 billion, reflecting investor enthusiasm for a Trump-led crypto resurgence.

The iShares ETF trading volume hit a new high just before Bitcoin’s price surge, underscoring Trump’s impact on the crypto market.

Policy Contrast with Previous Administration

Trump’s favorable approach to digital assets contrasts sharply with the regulatory stance of the Biden administration. Outgoing Securities and Exchange Commission (SEC) Chair Gary Gensler had taken a stringent approach to crypto, citing high levels of fraud and misconduct. The SEC’s increased scrutiny followed the collapse of high-profile firms, such as Sam Bankman-Fried’s FTX, which left the market reeling in 2022.

The Role of Digital-Asset Lobbying

Digital-asset companies and executives invested heavily in this year’s election, supporting candidates sympathetic to the crypto industry. This support has heightened investor confidence in Trump’s ability to foster a favorable regulatory environment for digital assets, marking a potential shift in U.S. crypto policy.