Bitcoin Surges Past $100,000 After Trump's Presidential Victory

Bitcoin saw a remarkable surge, nearing $90,000 on Tuesday, spurred by optimism following Donald Trump’s election as President of the United States. Many believe that his administration will adopt a more favorable stance towards cryptocurrency.

The world's leading cryptocurrency, Bitcoin, has emerged as a significant performer since the election, hitting a high of $89,637 in Asia, marking an increase of over 25% since November 5.

Bitcoin's trading price rise closely resembles the performance of Tesla (TSLA.O), the automaker helmed by Elon Musk, which has experienced an approximate 40% increase post-election. Investors are speculating that Trump’s connections and interests will be beneficial during his presidency.

According to Nick Twidale, chief market analyst at ATFX Global in Sydney, "This is clearly a Trump-driven rally, as he’s very supportive of the industry, which will likely enhance the demand for crypto-related stocks and the cryptocurrencies themselves." He added, "Bitcoin was already near all-time highs when the election results were declared, hence it had a clear path to gain further momentum."

During his campaign, Trump actively promoted digital assets, pledging to position the U.S. as the "crypto capital of the planet" and suggesting the establishment of a national bitcoin reserve.

While the specifics of these promises remain vague, the potential has fueled a speculative boom in crypto mining and trading companies.

Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital, commented, "I think Trump’s victory increases the likelihood that other nations may start acquiring bitcoin in anticipation of the U.S. doing likewise. It could also act as a significant catalyst for U.S.-listed Bitcoin miners, especially if there’s any chance of them being nationalized."

On Wall Street, shares of the crypto miner Riot Platforms surged nearly 17% overnight, with further gains in after-hours trading. Other miners like MARA Holdings (MARA.O) and CleanSpark (CLSK.O) saw increases approaching 30%.

Additionally, MicroStrategy (MSTR.O), a major player in bitcoin investment, announced that it had invested approximately $2 billion in bitcoin from October 31 to November 10. Its stock rose 26%, with continued increases in after-hours trading.

The excitement wasn’t limited to Bitcoin; smaller cryptocurrencies like ether and even dogecoin, once considered a joke currency, experienced notable gains.

Crypto investors are also hopeful for reduced regulatory scrutiny under U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has indicated he will replace. In September, Trump introduced a new crypto venture, World Liberty Financial.

Justin D'Anethan, head of Asia-Pacific business development at Keyrock, remarked, "What we’re seeing is not only a significant price milestone but also an indication that the market is becoming increasingly favorable towards bitcoin as a more stable and politically advantageous asset."

Bitcoin, Trump, Crypto, Market, Investors