Bitcoin's price surged above $81,000 for the first time, as the cryptocurrency got a boost from President-elect Donald Trump's embrace of digital assets and the prospect of a Congress with crypto-friendly lawmakers.
Trump was declared the winner in Arizona, a clear sweep of the seven swing states in the United States. His decisive victory in the presidential election prompted celebrations from the digital asset industry, which has spent more than $100 million to support a range of crypto-friendly candidates.
The largest cryptocurrency surged about 6.1% on Sunday, before extending gains to a record $81,497 in early Asian trading on Monday. The bullish sentiment also lifted prices of smaller coins, including Dogecoin, a meme-friendly coin promoted by Trump supporter Elon Musk.
As the dust settles from Trump’s victory, it was only a matter of time before there was some sort of rally, given the perception that Trump is pro-crypto, and that’s what we’re seeing now, said Li Shi, managing director of Hong Kong-based market maker Auros.
Trump buying spree
Trump campaigned on a pledge to put the United States at the center of the digital asset industry, including creating a strategic reserve of bitcoin and appointing regulators who love digital assets. For now, elated traders are paying little attention to questions like how quickly a strategic reserve would be implemented, or whether it is a realistic prospect.
Trump’s broader agenda of boosting domestic economic growth, cutting taxes and cutting bureaucracy has sparked a buying spree across stocks, credit and cryptocurrencies. The S&P 500 last week hit its 50th record of the year.
