Bitcoin rise source=freepik
Bitcoin reached a historic milestone on Tuesday, breaking the $89,000 mark as investors rallied behind expectations of a more crypto-friendly stance from President-elect Donald Trump. The cryptocurrency hit a record $89,599 before settling at $87,800 during early trading in Singapore, marking a remarkable 30% surge since Trump’s election victory on November 5.
Trump, who previously expressed skepticism about cryptocurrencies, has now promised to pursue policies that favor digital assets. This shift, along with the strengthened Republican control of Congress, has sparked optimism that Trump’s pro-crypto agenda will come to fruition. His plan includes establishing a U.S. Bitcoin reserve and supporting domestic crypto mining—policies that signal a dramatic departure from President Joe Biden’s restrictive approach.
The effect of Trump’s pivot has rippled across the digital asset market, with CoinGecko reporting the total market capitalization of cryptocurrencies at an all-time high of approximately $3.1 trillion. This surge reflects both speculative trading and investor excitement over the incoming administration’s potential crypto policies
In 2024, Bitcoin has more than doubled in value, outperforming traditional investments like stocks and gold. This remarkable rally has been driven by the launch of U.S.-based Bitcoin ETFs and recent rate cuts by the Federal Reserve, both of which have boosted investor confidence in digital assets.
Crypto firms and pro-crypto advocates played a significant role in supporting Trump and other crypto-friendly candidates during the election campaign. As Trump transitions from a skeptic to a vocal supporter, Bitcoin has become a sought-after asset, joining stocks and the U.S. dollar in what analysts are calling the “Trump trade.” Investors are eager to see Trump’s anticipated policies focused on economic growth, tax cuts, and trade protection.
Other major cryptocurrencies have followed Bitcoin’s lead. Ether rose over 7% to reach $3,371, Cardano saw a 4.7% gain, and Dogecoin surged by 24%. Stocks linked to the crypto market also performed strongly, with Coinbase closing up nearly 20% and MicroStrategy soaring by more than 25% in after-hours trading.
The market’s response underscores the high hopes for Trump’s potential impact on the crypto space, as investors prepare for a regulatory environment that may support innovation and growth in digital assets.
