The value of bitcoin hit a new high Wednesday as investors bet that Donald Trump’s victory in the US presidential election will be a boon for cryptocurrencies.
Bitcoin jumped nearly eight percent in early trading, rising above $75,000 US and breaking its previous record set in March. Other cryptocurrencies also rallied, including ether, the world’s second most popular cryptocurrency after bitcoin, which gained 8 percent.
Another token, dogecoin, hovered around 18 percent. The favorite cryptocurrency of billionaire Elon Musk, one of Trump’s most prominent supporters.
Trump was previously a crypto skeptic but changed his mind and embraced cryptocurrencies before the election.
He pledged to make America the “crypto capital of the planet” and create a “strategic repository” for bitcoin. His campaign is accepting donations in cryptocurrency and featured crypto fans at a bitcoin conference in July. He also launched World Liberty Financial, a new family-owned cryptocurrency exchange.
Bitcoin is up 77 percent this year.
“Bitcoin was the asset that always went up when Trump returned to the White House,” said Russ Mold, investment director at AJ Bell, a British online investment platform. After touching new highs, the market is now speculating about “when, not if, it will break through $100,000 US,” he said.
“Trump has already declared his love for the digital currency and crypto traders now have a new history to be even more excited about where the price can go,” Mold said.
But some experts have warned of the dangers.
“Investors should only get into crypto with money they can be prepared to lose,” said Susannah Streeter, head of finance and markets at Hargreaves Lansdown. “Because we have seen these villains in the past.”
The industry welcomes Trump
Crypto industry players have welcomed Trump’s victory, hoping that he will be able to implement long-pleading legal and regulatory changes.
Trump had promised that, if elected, he would remove the chairman of the Securities and Exchange Commission, Gary Gensler, who has been leading the US government in the crypto industry.
“Tonight the crypto voter spoke consistently — across party lines and in key races across the country,” said Brian Armstrong, CEO of Coinbase, one of the world’s largest cryptocurrency exchanges.
“Americans care disproportionately about crypto and want clear rules of the road for digital goods. We look forward to working with the new Congress to bring them,” Armstrong wrote on X.
Streeter said the Trump administration will likely pursue “light touch regulation” of the crypto industry.
“It’s definitely what crypto fans would want,” he said. “They want the spotlight to be brought to crypto, but they don’t want the regulations to be too onerous to stop opportunity and innovation.”
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