Bitcoin is nearing $90,000 as crypto enthusiasts anticipate a more relaxed regulatory approach to digital currencies under President-elect Donald Trump.
The world’s leading cryptocurrency reached a new high of $89,637 on Tuesday, extending its rapid rise since the US presidential election on November 5.
Bitcoin has surged over 30 percent since election day, with investors expecting Trump’s administration to embrace crypto-friendly policies.
While Trump had criticised Bitcoin in his first term, calling it a “scam” and “competing against the dollar,” he shifted his stance during his re-election campaign, portraying himself as a champion of cryptocurrency.
Trump has pledged to make the US “the crypto capital of the planet” and has indicated plans to replace Gary Gensler, the Securities and Exchange Commission chair, who has pursued stricter crypto regulations under President Joe Biden.
In September, Trump and his family launched their own cryptocurrency venture, World Liberty Financial.
“Obviously (It’s)a clear Trump trade as he is so supportive of the industry, and this can only mean more demand both for crypto stocks as well as the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney.
“The fact that Bitcoin was trading near all-time highs when the election result came through meant that it had clean skies above.”
Despite strong support, Bitcoin and other cryptocurrencies are widely seen as speculative assets, known for their sharp price swings. After reaching a high of $69,000 in late 2021, Bitcoin dropped below $16,000 the following year. It returned to its previous peak in March after gaining more than 300 percent since November 2022.