By Samuel Indyk and Gertrude Chávez-Dreyfuss
LONDON/NEW YORK (Reuters) – Bitcoin rose to a record above $87,000 on Monday in a breakneck rally amid expectations that cryptocurrencies will thrive in a light regulatory environment following the election of Donald Trump as U.S. president. and pro-crypto congressional candidates.
The world's largest and best-known cryptocurrency has more than doubled from the year's low of $38,505 and was last at $87,079, up nearly 9% from late Sunday, after previously hitting a high. record of $87,460.
US-listed cryptocurrency stocks also rose, with crypto trading Coinbase Global (NASDAQ 🙂 jumped 22% and iShares Trust rose 13%.
Crypto miner Riot Platforms (NASDAQ:) rose 19%, while MicroStrategy, one of bitcoin's largest corporate backers, gained nearly 24%.
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and amass a national reserve of bitcoins.
“The outcome of the 2024 US election is a moment of rebirth for the cryptocurrency industry,” Jeff Dorman, chief investment officer and co-founder of asset manager Arca, said in a research note.
“Events in crypto with this level of importance are rare. When they happen, they immediately broaden the world's collective perspective on the potential of the crypto movement and where this technology will take the world in the future.”
Short sellers of cryptocurrencies and blockchain-related stocks have suffered heavy losses since November 6, after bitcoin hit record highs. Combined losses from short selling at Coinbase, crypto miners Riot Platforms and MARA Holdings, as well as blockchain farm operator Bitfarms, were approximately $1.2 billion, as of the close on November 8.
END TO CRYPTOGRAPHY SCRUTINY
Cryptocurrency investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chairman Gary Gensler, whom Trump has said he will replace.
The cryptocurrency industry spent more than $119 million supporting pro-crypto Congressional candidates, many of whom won their elections.
In Ohio, one of the cryptocurrency industry's biggest enemies in Congress, Senate Banking Committee Chairman Sherrod Brown, was ousted, while pro-cryptocurrency candidates from the Democratic and Republican parties won in Michigan , West Virginia, Indiana, Alabama and North Carolina.
Trump also unveiled a new cryptocurrency business, World Liberty Financial, in September. Although details about the deal have been scarce, investors have taken his personal interest in the sector as a bullish sign.
Billionaire Elon Musk, a major Trump ally, is also an advocate of cryptocurrencies.
Eric Trump, one of the president-elect's sons and executive vice president of his private conglomerate, the Trump Organization, will be the keynote speaker at a bitcoin conference in Abu Dhabi next month, according to event organizers.
“The incoming Trump administration can accelerate regulatory clarity, greater institutional participation, better market infrastructure, and broader mainstream adoption.” German Bank (ETR:) said research analyst Marion Labouré.
“Trump's pragmatic approach marks a clear departure from recent regulatory restrictions.”
Flows into cryptocurrency exchange-traded funds have also increased since Trump's election victory. On Thursday, November 7, bitcoin ETFs experienced their largest inflows on record, attracting a net total of $1.38 billion, according to data from citi group (NYSE:).
The gains in cryptocurrencies have been broad. It hit a more than three-month high above $3,350.70 and was last trading at $3,318.42, up 4.6%. , an alternative cryptocurrency that began as a satirical critique of the 2013 crypto frenzy, was at its highest point in three years.
“Bitcoin will go much higher between now and the end of 2025,” Anthony Pompliano, founder and CEO of Professional Capital Management, said on Monday. “It's hard to find a compelling argument to be bearish or reserved right now.”
Pompliano has been a major investor in the crypto space over the past few years.
