Mr. Donald Trump's recent victory in the U.S. presidential election has had a significant impact on the cryptocurrency market and has helped Bitcoin approach the record threshold of $90,000.
A week after the U.S. presidential election, the upward trend of Bitcoin shows no signs of slowing down. Bitcoin surpassed $82,000 and surged straight to $84,000 in just one hour, then continuously set new milestones throughout the night.
At around 6:25 AM today (Vietnam time), Bitcoin surpassed $89,517, an increase of over 11% in 24 hours. The market capitalization recorded over $1.77 trillion, helping Bitcoin surpass silver to become the eighth largest asset in the world.
The cryptocurrency market has exploded since Mr. Donald Trump's victory, helping investors predict a more friendly approach to digital assets during his presidential term.
According to Ms. Susannah Streeter, head of the currency and market department at the investment platform Hargreaves Lansdown, the surge in cryptocurrency prices has occurred with excitement in the market thanks to Mr. Trump's victory in last week's presidential election.
"Mr. Trump's commitment to fully support cryptocurrency has taken Bitcoin to new heights," she commented to CNBC. "He has completely changed his perspective, shifting to support this sector and is committed to making America the world's cryptocurrency center.
She further stated that Bitcoin investors are betting on a more favorable regulatory environment and expect the U.S. government to build a strategic Bitcoin reserve, increasing demand.
Citi analysts believe Mr. Donald Trump could establish a clear legal framework for cryptocurrency, and the U.S. could become a cryptocurrency hub, as Mr. Trump stated in his election speech.
Mr. Trump's victory has attracted about $1.38 billion in investments into cryptocurrency-related funds, with Bitcoin accounting for about 60% of market revenue.
Mr. Trump also committed to ousting the Chairman of the Securities and Exchange Commission (SEC) Gary Gensler. Mr. Gensler has a tough approach to the cryptocurrency market and has pursued multiple lawsuits against businesses in this industry.
In addition, Mr. Eric Trump, the son of Mr. Trump, is also expected to speak at a conference in Abu Dhabi (UAE) next month, which will focus on cryptocurrency. All these factors are creating an optimistic sentiment among investors as they pour money into Bitcoin.
Shares of companies that own a lot of Bitcoin also surged. MicroStrategy, a Nasdaq-listed software company with the largest Bitcoin reserve among businesses, also rose 25% and closed on November 11 at an all-time high of $340.