Bitcoin soared to a new record high, climbing by as much as 9% to reach $75,372, following a surge in global market activity triggered by Donald Trump’s rising chances of winning the U.S. presidential election. As of 7:53 a.m. Wednesday in London, the price adjusted slightly to $73,620.
This spike in Bitcoin’s value marks its highest point since March, when the launch of Bitcoin exchange-traded funds (ETFs) in the U.S. sparked investor optimism.
Trump’s Election Lead Drives Optimism for Crypto
Trump is on track to win several key swing states, placing him on the brink of reclaiming the White House. With his party also poised to take control of the Senate, Democratic challenger Kamala Harris’s path to a comeback appears increasingly unlikely.
Bitcoin and other cryptocurrencies have been considered “Trump trades” by some investors. This is due to the former president’s embrace of digital assets, which gained significant traction during his campaign. The crypto industry, armed with a large campaign-finance budget, has been pushing its agenda in the political arena.
Trump’s Crypto Vision vs. Harris’s Regulatory Approach
During his campaign, Trump made bold promises for the cryptocurrency sector, vowing to make the U.S. the global crypto hub, build a Bitcoin stockpile, and appoint regulators who are supportive of digital assets. In contrast, Harris proposed a more cautious stance, advocating for a regulatory framework to support the industry’s growth.
Under President Biden, the Securities and Exchange Commission (SEC) has taken a more aggressive approach, focusing on enforcement actions against the crypto market. SEC Chair Gary Gensler has repeatedly warned that the crypto industry is plagued by fraud and misconduct, with the agency tightening regulations in response to the collapse of major firms, including the bankruptcy of FTX.
Crypto Industry Sees Hope for Change
Matthew Hougan, Chief Investment Officer of Bitwise Asset Management, noted that the crypto industry has long felt constrained by regulatory uncertainty. However, with the prospect of more favorable regulations under a Trump administration, industry leaders are beginning to position themselves for growth in the coming years.
“The crypto industry feels like it’s been operating with one hand tied behind its back for years, and it senses that might be coming to an end,” Hougan said.
Trump-Backed Crypto Victory in Ohio
In a notable political development, Republican Bernie Moreno, a car dealer and blockchain entrepreneur, defeated Senate Banking Chairman Sherrod Brown in Ohio. Brown, a long-time crypto skeptic, was targeted by crypto advocates who poured approximately $40 million into the race. This effort highlights the growing influence of the crypto industry in U.S. politics.
Broader Crypto Market Gains
As the U.S. election results pointed to a possible Trump victory, other digital assets also saw substantial gains. Ether, the second-largest cryptocurrency, rose by around 8%, while Dogecoin—supported by Trump ally Elon Musk—surged by 31%.
The shift in market sentiment comes amid hopes that a Trump administration would usher in friendlier regulatory conditions for the crypto industry, reversing the more restrictive policies seen under Biden.
Gensler Faces Pressure Amid Crypto Market Growth
Digital asset companies have frequently voiced frustrations with the Biden administration’s handling of cryptocurrency regulation. SEC Chair Gary Gensler has maintained that existing laws should apply to the crypto sector, often describing it as rife with fraud. The SEC has escalated its efforts to crack down on the market following the 2022 crash, which saw several high-profile failures, including the collapse of the FTX exchange.
With the prospect of a pro-crypto government under Trump, the industry is now hopeful for a more supportive regulatory environment in the near future.
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