Bitcoin reached a new all-time high of $75,389 on Wednesday, fueled by growing optimism that Donald Trump will win the 2024 U.S. presidential election. The world’s leading cryptocurrency surged more than 7% as Trump gained a strong foothold in key battleground states, including Pennsylvania, North Carolina, and Georgia, pushing him closer to reclaiming the White House.
This spike in Bitcoin’s price marks a new milestone, surpassing its previous peak of $73,803.25 in March. Many crypto investors are backing Trump as he has positioned himself as a pro-crypto candidate, promising to make the U.S. a global leader in digital currencies. With a focus on dismantling regulatory obstacles, he aims to create an environment where cryptocurrencies can thrive.
Trump’s campaign has resonated with prominent figures in the cryptocurrency space, including Silicon Valley investors like venture capital firm Andreessen Horowitz and the Winklevoss twins, co-founders of the Gemini exchange.
Crypto Market Reacts Positively to Trump’s Candidacy
Kris Marszalek, CEO of Crypto.com, remarked that “the future of crypto has never looked brighter than today.” Tyler Winklevoss echoed the sentiment on X (formerly Twitter), calling the moment “the brink of a new American Renaissance,” and adding, “The crypto army is striking!”
Other cryptocurrencies followed Bitcoin’s upward momentum, with Ether gaining 8.6% to reach $2,622, and Solana jumping 11% to $184. Even Dogecoin, a meme-based token often promoted by Elon Musk, saw a significant 16% increase, reaching 20 cents.
Brian Armstrong, CEO of Coinbase, the largest cryptocurrency exchange in the U.S., celebrated the shift in sentiment, stating, “Tonight the crypto voter has spoken decisively. Americans care about crypto and want clear rules of the road for digital assets.”
Trump’s Regulatory Promises Fuel Investor Confidence
For many in the crypto industry, Trump’s rise has signaled the possibility of a more favorable regulatory environment. His criticism of current SEC chair Gary Gensler has been particularly significant. Gensler has been a polarizing figure within the industry due to his tough stance on cryptocurrency regulation, launching lawsuits against prominent crypto companies, including exchanges like Coinbase and Kraken, as well as blockchain companies like Ripple Labs.
If elected, Trump has promised to remove Gensler from his post, a move many in the crypto space are hoping for. Matt Hougan, Chief Investment Officer at Bitwise, a cryptocurrency investment firm, stated, “The market is gaining confidence by the minute that it’s going to face a neutral or even positive regulatory environment.”
Bitcoin Mining Stocks Benefit from Trump’s Proposals
Shares of cryptocurrency mining companies also saw significant gains, buoyed by the prospect of a Trump victory. The Republican candidate has previously pledged to ensure that more Bitcoin mining takes place in the U.S. This has led to a surge in stocks for companies such as Riot Platforms, Marathon Digital, and Core Scientific, with each seeing double-digit percentage increases in pre-market trading.
Jake Ostrovskis, an over-the-counter trader at Wintermute, a crypto market maker, pointed out that a Republican win would likely increase the chances of pro-crypto legislation passing through Congress, a development that could further benefit the industry.
Institutional Investment Pushes Bitcoin Above $75,000
Bitcoin’s price rise has been partly driven by increasing institutional investment. Notably, Bitcoin-focused exchange-traded funds (ETFs) have seen significant inflows. BlackRock’s Bitcoin ETF, which is among the largest in the market, has seen over $2.4 billion in new investments in just the past week, bringing the fund’s total assets under management to more than $29 billion.
Despite a brief pullback earlier this year when Bitcoin’s price dipped below $50,000 after President Joe Biden exited the race and endorsed Vice President Kamala Harris, the cryptocurrency has now regained its upward trajectory, much like the stock price of Trump’s media company, which has often been used as a barometer for his political fortunes.
Trump’s Crypto Venture Gains Attention
Beyond his political campaign, Trump has been exploring opportunities in the crypto space. His new venture, World Liberty Financial, is a decentralized finance (DeFi) platform. The project, which has raised $14.7 million through token sales, has sparked debate. While some worry that such ventures could undermine trust in the sector—already reeling from high-profile collapses—others see Trump’s involvement as a boost for the industry’s legitimacy and potential for future growth.
A Strong Rally as Election Day Nears
As election day draws near, Bitcoin’s new high signals a turning point for the crypto market. Digital asset investors are betting on Trump’s pro-crypto stance and the possibility of more favorable regulations if he wins the presidency. Should Trump follow through on his promises to create a more supportive environment for cryptocurrencies, the future of digital assets in the U.S. could see substantial growth.
The surge in Bitcoin’s price, along with the broader rally in altcoins and mining stocks, suggests that the crypto industry is gearing up for a new era. If Trump secures victory, it’s likely to further catalyze the growth and mainstream adoption of cryptocurrencies in the U.S., positioning the country as a global leader in the space.
As market sentiment continues to favor a Trump win, the cryptocurrency industry remains optimistic about the future, with investors and executives alike eagerly awaiting the potential regulatory shifts that could transform the digital asset landscape.
