Bitcoin's value rose sharply in the last few hours of trading on Thursday, reaching an all-time high after former President Donald Trump defeated Vice President Kamala Harris to win the US presidential election.
The leading cryptocurrency is up 9% in the past 24 hours at around $76,052.66, after hitting a new record high of $76,179.0.
Meanwhile, Ether rose 11%, Solana rose 13%, and payments coin XRP jumped more than 5%. Meanwhile, meme coins surged, with Dogecoin up more than 15%.
Shares of cryptocurrency exchange Coinbase Global Inc (NASDAQ:COIN) surged 31.11%, marking its best day ever since its first trading day, while MicroStrategy Inc (NASDAQ:MSTR), the largest holder of bitcoin, surged 13%.
While Bitcoin benefits from its inflation-hedging narrative, other cryptocurrency investors and Coinbase are betting that the US regulatory environment will be more supportive of the crypto industry, as Trump promised during his campaign.
Voters in this election were concerned about the state of the government deficit, which rose 8% in fiscal 2024 to $1.8 trillion, and the tax cuts promised by both Trump and Harris. Many investors view bitcoin, like gold, as a hedge against the possibility of fiscal and monetary policy combining to devalue the dollar and raise inflation.
Trump's Promises on Cryptocurrencies
Trump has pledged to turn the United States into the world’s crypto capital, create a strategic reserve for Bitcoin, and appoint regulators to support digital assets if he returns to the White House. Harris, in contrast, has taken a more conservative approach, calling for a regulatory framework for the industry, while President Joe Biden’s administration has seen a crackdown on the crypto sector.
In Ohio, Republican Bernie Moreno defeated Senate Banking Committee Chairman Sherrod Brown, a staunch opponent of the industry. Cryptocurrency backers spent an estimated $40 million to defeat Brown, underscoring the growing influence of their political investments.
Gensler's Future and the SEC's Position
Cryptocurrency companies have complained about a lack of regulatory clarity during the Biden administration. SEC Chairman Gary Gensler has said that current rules will remain unchanged, and reiterated his position that the sector is rife with fraud. The commission has taken several actions against cryptocurrencies since the 2022 market crash, which saw the bankruptcy of FTX.
Assuming Trump wins, he is expected to fulfill his promise to fire Gensler on his first day in office, said Lee Shi, managing director of Auros in Hong Kong.
Bitcoin has risen 77% since the start of 2024, outperforming traditional assets such as stocks and gold. Bitcoin exchange-traded funds have attracted net inflows of $23.5 billion, after being launched by major firms including BlackRock and Fidelity Investments.
