Bitcoin surged past $90,000 to a new all-time high on Wednesday, briefly reaching $93,480 before easing back to around $88,185 marking a 32% gain since the U.S. election on November 5. Cryptocurrency advocates view Donald Trump’s election as a potential boon, anticipating that his administration’s pro-crypto stance could foster favorable legislation making bitcoin a strategic reserve asset for the U.S. Treasury and enhancing the sector’s growth.
Smaller cryptocurrencies have followed bitcoin’s rise; ether increased by 37% since Election Day while dogecoin – a highly volatile token backed by Elon Musk, a Trump ally – skyrocketed by over 150%. Damon Polistina, head of research at Eaglebrook, noted the market’s expectation of a “pro-bitcoin administration,” potentially easing regulatory constraints that previously deterred institutional investors from bitcoin.
Trump campaigned on transforming the U.S. into the “crypto capital of the planet” and hinted at building a national bitcoin reserve. Although details remain speculative, the crypto sector saw a surge in mining activity and trading interest as investors bet on Trump’s crypto-friendly policies.
According to Zach Pandl of Grayscale Investments, the election results could allow large financial institutions to engage with blockchain technology in ways previously restricted. Meanwhile, prominent bitcoin investor MicroStrategy revealed it spent $2 billion on bitcoin in the days leading up to Trump’s election win, driving its shares to record highs.
Despite optimism, some experts caution investors about potential volatility. Hinkal CEO Georgi Koreli advised investors to brace for possible fluctuations, warning that while bitcoin might reach $95K or even $100K a short-term pullback could occur as it stabilizes.
Similarly, IG North America CEO JJ Kinahan expects momentum to continue through the inauguration at which point the market may see clearer plans for bitcoin’s future trajectory.
