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As soon as it became apparent that Donald Trump was going to win the presidency, bitcoin’s price began to rally. A few hours before the Republican candidate declared victory, and with leads in all of the crucial swing states, the world’s most valuable cryptocurrency hit a new all-time high.
Reaching above $75,000 for the first time in its history, the cryptocurrency’s sudden surge came from Trump’s promise to support the crypto industry if elected. It marked a 50 per cent increase in bitcoin’s price since August, when Trump briefly lost ground to Kamala Harris in the polls.
The Democratic candidate had also reached out to the crypto space, saying last month that she would build an “opportunity economy” that ensures regulatory frameworks that protect cryptocurrency owners, however many high-profile figures within the industry had pegged their hopes on the more vocal candidate.
The former president had pitched himself as a pro-crypto candidate, despite previously dismissing bitcoin as a “scam against the dollar” and claiming its value was “based on thin air” during his time in office.
In an effort to court the ever-growing segment of voters that own crypto – estimated to be around 50 million in the US – Trump pledged to protect cryptocurrency from “Elizabeth Warren and her goons” and fire Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has taken an aggressive approach to digital currency regulation.
During an appearance at the Bitcoin 2024 Conference in Nashville in July, Trump said he would set up a bitcoin treasury from the significant stockpile amassed by the government in seizures from financial criminals.
“For too long our government has violated the cardinal rule that every bitcoin knows by heart: Never sell your bitcoin,” he said.
Further boosting bitcoin’s price on Wednesday was the prospect of a Republican-controlled Senate, which will make it easier for the Trump administration to introduce the policies and regulation he claimed he would deliver.
“The bitcoin treasury plan is one step closer to reality. While there are a lot of moving parts to bitcoin‘s success, the immediate price increase reaction to Trump’s initial win announcement indicates significant market confidence,” said Danny Scott, chief executive of CoinCorner.
“If he follows through on his crypto pledges, we can expect a lasting impact on bitcoin. For starters, a bitcoin treasury plan will kick-start more awareness and education campaigns, which is a much-needed boon for the bitcoin community. Nation states will almost certainly have to react to the US doing this and gain some exposure to bitcoin themselves. It may very well trigger an arms race of nations.”
The broader crypto market also experienced a significant boost from political developments in the US, adding more than $250 billion to its overall market cap to take it above $2.45 trillion for the first time since July.
One of the biggest gains came from dogecoin, which has rallied more than 50 per cent since Sunday.
The memecoin is a favourite of Elon Musk, who is expected to play some kind of role in Trump’s administration having been one of his most vocal supporters during the campaign.
The tech billionaire has previously said that dogecoin has the potential to become the “currency of the internet” and even referenced it in his proposed ‘Department Of Government Efficiency’, or DOGE, that aims to untangle federal bureaucracy.
“In addition to the general positivity for cryptocurrencies, speculators are betting on Musk’s potential position in the new administration,” said Alex Kuptsikevich, chief market analyst at FxPro. “The Tesla founder and head of X has maintained the recognition of one of the first meme coins for many years.”
