/dhanam-english/media/media_files/4HHJjMlaWAdPt9fzuwFa.jpg)
Bitcoin soared this morning past $89,000 for the first time due to US President-elect Donald Trump’s support of digital assets and the possibility of lawmakers favouring it in Congress.
Within a week of the US election results, which propelled Trump to the presidency, the Bitcoin price soared by one-third.
Bitcoin, the largest cryptocurrency token, jumped 6 percent on Sunday. On Monday, it crossed $82,300. Smaller tokens, such as Dogecoin, promoted by Elon Musk, also rose.
Trump's win has resulted in this significant jump in digital assets, an industry that spent more than $100 million on supporting crypto-supporting candidates in the US elections.
“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, and that’s what we’re seeing now,” a cryptocurrency expert told Bloomberg .
Trump's promise
Donald Trump had promised to make the US the focus of the digital asset industry. He plans to create a strategic Bitcoin stockpile and appoint regulators favourable to digital assets, the report said.
So far in 2024, Bitcoin has increased nearly 100 percent, boosted by demand for US exchange-traded funds (ETFs) and key rate cuts by the Federal Reserve. After the Tuesday election results, the returns on Bitcoin are more than the returns from investment tools such as stocks and gold.
The report said US ETFs, mainly backed by the $35 billion iShares Bitcoin Trust of BlackRock Inc., reported a record daily net inflow of almost $1.4 billion on Thursday.
"We believe a significant portion of the institutional market de-risked in the lead-up to the election and is now re-entering post-Trump’s win, creating material buying pressure — this is likely to be ongoing for some time yet,” the report said quoting another expert.
“Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely,” the expert said.
