Cryptocurrency explodes with Trump's triumph, Bitcoin surges past $81,000 for first time

Bitcoin, the world’s biggest and best-known cryptocurrency, surged to a record high of over $81,000 on Monday, getting a boost from Donald Trump’s win in the 2024 US election as he embraces digital currency and the prospect of a Congress featuring pro-crypto lawmakers.

On Sunday, Bitcoin surged 4.7 per cent to an unprecedented $80,092.

Cryptocurrency touches new high

According to a report by Reuters, Bitcoin which stood as low as $38,505 on January 23 has more than doubled now. It was last at $80,829 in Asian hours having touched a record high $81,464 earlier in the session, the report added.

Bullish sentiment lifted smaller coins, including Ether which surged past $3,200 for the first time in over three months. It was last fetching $3,192.

As per the report, so far in 2024, Bitcoin has added about 92 per cent getting fillip from robust demand for dedicated US exchange-traded funds (ETFs) and interest rate cuts by the Federal Reserve.

Bitcoin touching new record

During his election campaign, Trump had vowed to put the US at the centre of the digital-asset industry, including creating a strategic Bitcoin stockpile and appointing regulators enamoured with digital assets.

After his clean sweep of the seven US battleground states, there was cheer within the digital asset industry, which spent over US$100 million (S$132.7 million) backing a range of crypto-friendly candidates.

Also, the cryptocurrency industry spent more than $119 million backing pro-crypto US congressional candidates in the hope of getting crypto-friendly legislation passed to promote digital assets.

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The effort succeeded last week, with many of the chosen candidates by industry winning their races, potentially ushering in a Congress poised to champion crypto.

“Bitcoin’s Trump-pump is alive and well… with Republicans on the cusp of taking the house to confirm a red wave in congress, it seems the crypto crowd are betting on digital-currency deregulation,” the Reuters report quoted Matt Simpson, senior market analyst at City Index, as saying.

“But this looks like blind optimism on their part, given Trump’s attention seems to be on deportation, pardons and the general deconstruction of Biden-era policies," Simpson added.

With inputs from agencies.