Things are looking good for crypto
Bitcoin and crypto investors celebrated Donald Trump’s election victory on Wednesday, saying he will make the US “the bitcoin superpower of the world”. As Trump won the presidential race, bitcoin rallied more than 7 percent to an all-time high of $75,389.
This milestone surpasses the previous high of $73,803.25, set in March, and boosts the price of a host of other cryptocurrencies. A Republican “clean sweep” of Congress and Trump’s victory can change attitudes towards crypto in Washington, according to senior crypto executives.
As a pro-cryptocurrency candidate, Trump pledged to end the industry’s perceived “persecution” and secure more crypto-friendly laws. “Crypto has never looked brighter than it does today,” said Kris Marszalek, chief executive of Crypto.com.
Other crypto tokens saw their share prices rise due to Bitcoin’s rise. A ten percent rise in ether’s price to $2,661 was followed by a 12% rise in the price of solana to $185.
In a brief spike, Dogecoin, backed by Trump backer Elon Musk, gained 30% to 22 cents, then fell to 20 cents. As crypto market investors in Silicon Valley spent heavily on campaign finance to support pro-crypto candidates, Trump won. The Winklevoss brothers, Tyler and Cameron, were also among the investors. “We are on the brink of a new American Renaissance,” said Tyler Winklevoss. “The crypto army is striking!” he wrote on X.
"Tonight the crypto voter has spoken decisively"
On Bitcoin & Crypto
There is a disproportionate amount of interest among Americans in crypto, and they want clear rules for digital assets. Many investors and executives in the cryptocurrency industry hope Trump will fulfill some of his election promises, including building a US bitcoin strategic reserve and firing Gary Gensler, the chair of the Securities and Exchange Commission who has been vilified by crypto enthusiasts. In recent months, his agency has sued exchanges Coinbase, Kraken, and Crypto.com, blockchain software company Consensys, and payments provider Ripple Labs. There was a spike in bitcoin and other cryptocurrency tokens on election night, indicating the industry is gaining confidence . “I think it will face a neutral or even positive regulatory environment”, said Bitwise’s chief investment officer, Matt Hougan. In addition to the surge in crypto miners’ stocks, Trump had previously promised to ensure bitcoin mining happens in the US if he won the election.
Shares of Riot Platforms, Marathon Digital, and Core Scientific jumped 12, 9, and 7 percent, respectively, while Coinbase’s shares soared 19 percent. An over-the-counter trader at Wintermute said a Republican presidential victory would increase the chances of crypto-related legislation passing in Congress – at least in the eyes of market participants. A surge in inflows into Bitcoin exchange traded funds also propelled Bitcoin’s gains this week. With recent receipts of $2.4 billion, BlackRock’s fund is now the market leader with more than $30 billion in assets.
Prior to the election, Trump had also been promoting World Liberty Financial, a crypto venture from which he stands to earn substantial fees. The decentralised finance platform has said it will “leverage the global reach and recognition of the Trump brand” and has raised $15mn from selling tokens that do not offer buyers any ownership stake and cannot be traded.