Bitcoin soared on Tuesday to surpass $89,000 in a continued reaction to the prospect of major policy shifts under a Trump administration.
However, the cryptocurrency has been firmly in unchartered territory for a number of days now - in the hours leading up to Trump’s win, the price of bitcoin had already reached record-breaking levels, rising more than 8 per cent past US$75,000.
According to BTC Markets chief executive Caroline Bowler, the return of the former president to the White house has seen bitcoin emerge as a standout asset in the broader market rally.
“Investors are sending a clear message: optimism for the future of crypto under Trump, especially given his public support for bitcoin and digital assets,” Bowler explained.
“President Trump’s administration is widely expected to create a more favourable environment for crypto’s growth, boosting market confidence and attracting new investment.
“While the specifics remain uncertain, the mere perception of such moves is enough to drive prices upward in a market as narrative driven as crypto.”
In addition to Trump’s endorsement, Bowler highlighted the strong backing from prominent US figures, including Senator Cynthia Lummis of Wyoming, who has championed legislation proposing the US government purchase 200,000 BTC annually over the next five years.
“This would mark a major step toward federal adoption of crypto and pave the way for greater institutional involvement.”
As such, one of the key policy shifts under a Trump presidency, she underscored, is likely to be deregulation, particularly as it relates to the US Securities and Exchange COmmission (SEC).
“Trump has publicly stated his intention to replace SEC Chair Gary Gensler, a figure criticised by the crypto community for his enforcement-heavy regulatory approach,” Bowler continued.
“A new, potentially pro-crypto SEC chair could shift the regulatory landscape dramatically. Moving from enforcement to a more transparent, predictable framework that would foster the practical use of digital currencies. This change would reduce regulatory uncertainty and encourage businesses and investors to enter the market.”
In conversation with InvestorDaily last week, Magnet Capital co-founder Egor Sidelska echoed this sentiment, noting that the current administration has taken a more cautious and regulatory-heavy approach to crypto, which did not bode well for industry players.
“The head of the SEC holds this unwieldy ability to make people bend at the knee and succumb to our wheel, but not provide any guidance as to how they can actually register in a meaningful, lawful way,” Sidelska said.
And given the favourable rhetoric and promises from Trump’s campaign, the co-founder predicts that bitcoin will continue to soar in anticipation of a more crypto-friendly administration.
“We’ll see all-time highs throughout the end of this year, until he gets into office, just because people are expecting that this, any positive sentiment, any rhetoric, is just going to add fuel to the fire.
This outlook is broadly in line with analysts' forecasts that bitcoin will surpass US$100,000 in just a matter of months.
Josh Gilbert, market analyst at eToro, agrees that the cryptocurrency is now in price discovery, with the momentum from this expected to potentially carry bitcoin into six-figure territory within a matter of months.
“Although bitcoin is sitting at record highs, it really feels like this rally could just be getting started. This bull market has a lot of weight behind it, and that could keep driving the asset higher,” Gilbert said last week.
