Bitcoin crosses $80,000 mark for first time ever
Bitcoin broke the $80,000 barrier for the first time ever, reaching a peak of $80,071.17 around 5:30 PM IST, as per CoinMarketCap. The rally is largely due to President-elect Donald Trump's supportive attitude toward cryptocurrencies and a Congress full of crypto-friendly lawmakers. While Bitcoin has since retraced slightly, trading around $79,430, this milestone marks a significant turning point in the cryptocurrency market.
Trump's pro-Crypto promises boost Bitcoin
During his campaign, Trump had promised to put the US at the forefront of the digital asset industry. His plans involve creating a strategic Bitcoin reserve and appointing pro-digital asset regulators. After Tuesday's election, Trump's Republican Party now holds the Senate and is on the verge of clinching a narrow majority in the House. This political development is considered good for crypto policies.
Market experts weigh in on Bitcoin's surge
Le Shi, Hong Kong managing director at market-making firm Auros, weighed in on the post-election crypto market trend. He said, "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." This year alone, Bitcoin has surged about 90%, fueled by strong demand for dedicated US exchange-traded funds (ETFs) and interest rate cuts by the Federal Reserve.
Bitcoin ETFs witness record inflows post-election
Notably, the performance of Bitcoin ETFs, especially BlackRock Inc.'s $35 billion iShares Bitcoin Trust, has been remarkable after the US election. On Thursday, the trust saw a record daily net inflow of nearly $1.4 billion according to Bloomberg data. The previous day, the iShares ETF's trading volume hit an all-time high, highlighting how Trump's victory is transforming the crypto landscape. Standard Chartered has predicted that Bitcoin could hit $200,000 (roughly ₹1.5 crore) by the end of 2025.
Trump's approach differs from Biden's crypto crackdown
Trump's approach to digital assets is a stark contrast to President Joe Biden's administration, which had started cracking down on them. Securities & Exchange Commission Chair Gary Gensler had repeatedly called the sector rife with fraud and misconduct. The agency tightened its grip on crypto after a 2022 market rout and several collapses, including the bankruptcy of Sam Bankman-Fried's fraudulent FTX exchange.
