Bitcoin price approached $90,000 on Tuesday following a surge in value in the week since Donald Trump's election win. The optimism surrounding Trump's expected crypto-friendly administration has boosted the world's largest cryptocurrency by more than 25%, reaching $89,637 in Asia.
Investors believe that Trump's support for the industry will drive demand for crypto stocks and currencies. Nick Twidale, chief market analyst at ATFX Global, noted, "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."
During his campaign, Trump pledged to make the United States the "crypto capital of the planet" and accumulate a national stockpile of bitcoin, although the implementation of such promises remains uncertain.
Other cryptocurrencies like ether and dogecoin have also seen significant increases. Investors perceive a lessening of regulatory scrutiny under the imminent replacement of U.S. Securities and Exchange Commission Chair Gary Gensler, as mentioned by cryptocurrency asset manager Astronaut Capital's chief investment officer Matthew Dibb.
Companies related to cryptocurrency mining and trading, such as Riot Platforms, MARA Holdings, CleanSpark, and MicroStrategy, have experienced notable gains. Trump himself has introduced a new crypto venture called World Liberty Financial, further fueling the market's enthusiasm.
Despite nearing the $90,000 milestone, Bitcoin experienced a slight drop to $85,100 on the same day. Since Trump's electoral victory, Bitcoin has surged nearly 25% and has seen a 105% increase in value throughout the year, hitting a new all-time high of $89,968 before declining to $86,655 at the European market close.
The eToro investment platform foresees fewer obstacles in the cryptocurrency industry under Trump's clear victory in the U.S. elections, expecting easier implementation of crypto-related initiatives promised during his campaign.
