Bitcoin hit a new record above $80,000 on Sunday, marking a significant rise for the world’s largest cryptocurrency. The surge, which began ahead of Tuesday’s U.S. presidential election, was amplified after it became clear that Donald Trump had secured a win. Bitcoin continued its upward trajectory in the days following his victory, up 80% this year alone—far outpacing the S&P 500’s 25.7% gain.
The crypto industry is viewing Trump’s victory as a positive signal for digital currencies. While Trump was once a vocal critic of Bitcoin, even calling it “based on thin air,” he has embraced crypto in recent months. This change of heart is likely due to his personal stake in the industry; in September, Trump and his children launched World Liberty Financial, a crypto business. “It’s very young and very growing,” Trump said in September, expressing his belief in the future of crypto.
In contrast, the Biden administration has been more cautious about cryptocurrency. SEC Chairman Gary Gensler has openly criticized the crypto industry, calling it “ripe with fraud, scams, and abuses,” and has worked to regulate it, even suing several crypto firms. The SEC has also sought to classify some cryptocurrencies as securities, aiming to enforce stricter regulations. However, Gensler did approve a Bitcoin exchange-traded fund (ETF) in 2023, allowing people to add crypto exposure to their retirement accounts.
Trump, on the other hand, has been vocal about his support for the crypto sector. In August, he suggested that cryptocurrencies could “define the future,” advocating for them to be “mined, minted, and made in the USA.” He even proposed a national strategic bitcoin stockpile, similar to the U.S. strategic petroleum reserve, to invest in crypto as a national security measure.
Elon Musk, a prominent Trump ally and known crypto enthusiast, has also contributed to the crypto bull market. His favorite coin, Dogecoin, surged over 20% on Sunday and has been gaining momentum throughout the week. With Trump’s increasing support for crypto and Musk’s endorsement, it seems the future of digital currencies could be more closely tied to the political landscape than ever before.