- Bitcoin surged to a record high above $75,000 as Donald Trump won the U.S. presidential election, fueling bets on wider crypto adoption and weaker regulation
- Investors anticipate that a second Trump administration will increase fiscal deficits, boosting bitcoin as an inflation hedge
- Trump has promised to establish favorable crypto regulation, launch a national bitcoin stockpile, and replace the current SEC chair who has been adversarial toward the industry
Bitcoin has rallied to an all-time high as former President Donald Trump defeated Vice President Kamala Harris to win the White House. The cryptocurrency is benefitting from its inflation hedge narrative, while investors are betting the US regulatory environment will become more crypto-friendly under Trump.
Bitcoin Price Surges to Fresh Record
The price of the flagship cryptocurrency rose 9% to about $75,600, according to CoinMetrics, after touching a fresh record of $76,149.07. Ether jumped 11% and Solana’s token rocketed 13%. Memecoins also saw strong gains, with Dogecoin up more than 16%.
Factors Driving Bitcoin’s Rally
Bitcoin is seen by many investors as an inflation hedge that could benefit from the fiscal and monetary policies expected under Trump. Trump has presented himself as pro-crypto and promised to install a friendly SEC chair to replace the current leadership under Gary Gensler.
While Trump’s specific crypto plans remain to be seen, the industry expects his administration will craft a regulatory framework to encourage crypto innovation and adoption. Crypto exchange Coinbase and bitcoin holder MicroStrategy rallied strongly on Trump’s victory, with Coinbase set for its best day ever.
Looking Ahead
In past elections, bitcoin has seen strong returns in the months following election day. This is partly tied to major Fed policy shifts. With Trump’s victory, the market now anticipates further interest rate cuts that could boost bitcoin’s rally. Crypto investors will watch closely to see if Trump delivers on his promises for the industry.
