Bitcoin soars above $84,000 as Donald Trump's win boosts crypto prospects

Trump's decisive victory in the presidential election has prompted celebratory chest-thumping from the digital-asset industry

By Sidhartha Shukla 

Bitcoin rallied past $84,000 for the first time, boosted by President-elect Donald Trump’s embrace of digital assets and the prospect of a Congress featuring pro-crypto lawmakers. 

Trump was declared the winner in Arizona, marking a clean sweep of the seven US battleground states. His decisive victory in the presidential election has prompted celebratory chest-thumping from the digital-asset industry, which spent over $100 million backing a range of crypto-friendly candidates. 

The largest token climbed as much as 5.6 per cent to an unprecedented $84,360 in New York. Bullish sentiment lifted smaller coins too, including Dogecoin, a meme-crowd favorite promoted by Trump supporter Elon Musk, the world’s richest man. 

 

“With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that’s what we’re seeing now,” said Le Shi, Hong Kong managing director at market-making firm Auros. 

Shares of crypto-related companies also surged. Bitcoin proxy MicroStrategy and US crypto exchange Coinbase each jumped around 17 per cent. Crypto miners MARA Holdings and Riot Platforms climbed 22 per cent and 18 per cent, respectively.     

Bitcoin options traders are already eyeing a landmark price of $100,000 for the original cryptocurrency. Investors are lining up bets that Bitcoin will pass the milestone as soon as the end of the year, according to data from crypto options exchange Deribit.  

As of Monday morning in London, there was 9,635 Bitcoin — worth roughly $780 million — in open interest bet on Bitcoin hitting $100,000 by Dec. 27, Deribit data shows. That’s the most riding on any trade for that expiry date. Deribit puts the chances of the trade paying off at 18.6 per cent.   

Trump’s Agenda 

Trump vowed on the campaign trail to put the US at the center of the digital-asset industry, including creating a strategic Bitcoin stockpile and appointing regulators enamored with digital assets. Jubilant traders for the moment are paying little heed to questions such as the speed of likely implementation or whether a strategic stockpile is a realistic possibility. 

His broader agenda of stoking domestic economic growth, tax cuts and reducing red tape has fueled a buying spree across stocks, credit and crypto. The S&P 500 equity index last week hit its 50th record this year. 

Bitcoin has added about 95 per cent so far in 2024, helped by robust demand for dedicated US exchange-traded funds and interest-rate cuts by the Federal Reserve. The rise in the token, which also scaled fresh records after Tuesday’s US vote, exceeds the returns from investments such as stocks and gold. 

The ETFs, powered by BlackRock Inc.’s $35 billion iShares Bitcoin Trust, posted a record daily net inflow of almost $1.4 billion on Thursday, according to data compiled by Bloomberg. A day earlier, the iShares ETF’s trading volume jumped to an all-time peak — all signs of how Trump’s victory is reshaping crypto. 

Institutional Demand 

“We believe a significant portion of the institutional market de-risked in the lead-up to the election and is now re-entering post Trump’s win, creating material buying pressure — this is likely to be ongoing for some time yet,” said Richard Galvin, founder of crypto-focused investment firm DACM. 

Trump’s stance contrasts with a crackdown on digital assets under President Joe Biden. Securities & Exchange Commission Chair Gary Gensler repeatedly labeled the sector as rife with fraud and misconduct. The agency turned the screws on crypto following a 2022 market rout and a litany of collapses, notably the bankruptcy of Sam Bankman-Fried’s fraudulent FTX exchange. 

Digital-asset companies spent heavily during the election campaign to boost candidates viewed as favorable to their interests. Against that backdrop, Trump did an about-face, becoming a supporter of an industry he once labeled a scam. 

“Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.