Bitcoin (BTC-USD) has first surpassed the $80,000 mark, driven by President-elect Donald Trump's acceptance of cryptocurrency assets and expectations for a friendlier regulatory environment.
Cryptocurrencies surged by up to 4.7% to a record $80,092 on Sunday. The upcoming Trump administration is seen as friendly to cryptocurrencies, which investors hope will translate into greater regulatory clarity in the U.S.
Trump, who has previously criticized digital assets, has pledged to make the U.S. the "cryptocurrency capital of the planet and the world's bitcoin (BTC-USD) superpower."
Investors are considering the possibility that the Trump administration will roll back cryptocurrency regulations, with a shift in support for cryptocurrencies in Congress potentially leading to legislation that supports the industry's development.
Trump has stated that he will fire SEC Chairman Gary Gensler upon taking office and hire cryptocurrency-friendly regulators. He also promised to keep bitcoin (BTC-USD) in the strategic national reserves.
Investment firm Piper Sandler stated: "With this shift in perspective, we expect to see comprehensive cryptocurrency legislation passed in the coming quarters and believe that regulatory clarity will lead to even broader adoption of cryptocurrencies."
Bitcoin (BTC-USD) has risen nearly 80% YTD, outperforming the S&P 500 and gold. Bitcoin ETFs are the main driver boosting Bitcoin (BTC-USD) returns, with spot cryptocurrency ETFs witnessing some of the strongest inflows since their launch earlier this year.
According to analysts at Citi, as of November 7, Bitcoin (BTC-USD) ETFs had received $25.5 billion in net inflows, while Ethereum (ETH-USD) ETFs saw $420 million in net outflows.
Citi further noted that the net inflows into Bitcoin (BTC-USD) and Ethereum (ETH-USD) ETFs in the two days following the election were $2.01 billion and $132 million, respectively.
