Bitcoin surges to record $89,000 after election
Bitcoin has surged to an unprecedented high of $89,000, marking a dramatic rally that more than doubled its value from this year's low of $38,505. The cryptocurrency's remarkable ascent follows Donald Trump's election as US president and victories of pro-crypto candidates in Congress, sparking optimism about a more favorable regulatory environment for digital assets.
The rally has triggered significant gains in crypto-related stocks, with Coinbase Global rising 22%, iShares Bitcoin Trust up 13%, Riot Platforms surging 19%, and MicroStrategy gaining nearly 24%. Short sellers of crypto stocks have suffered approximately $1.2 billion in losses since November 6.
Trump's campaign promises to make the United States the "crypto capital of the planet" and establish a national bitcoin stockpile have bolstered market confidence. The cryptocurrency industry's $119 million investment in supporting pro-crypto congressional candidates has yielded success, including the defeat of crypto critic Senator Sherrod Brown.
The president-elect's personal involvement in the sector through his new venture, World Liberty Financial, and support from allies like Elon Musk have further strengthened market sentiment. Eric Trump's scheduled keynote speech at an upcoming bitcoin conference in Abu Dhabi has also contributed to the positive outlook.
Institutional interest has intensified, with bitcoin ETFs recording their largest-ever inflows of $1.38 billion on November 7, according to Citigroup data. The rally has extended to other cryptocurrencies, with Ethereum reaching a three-month high above $3,350 and Dogecoin hitting a three-year peak.
Deutsche Bank analyst Marion Laboure suggests that Trump's administration may accelerate regulatory clarity and enhance institutional participation, marking a significant shift from recent regulatory restrictions. Industry experts, including Anthony Pompliano, maintain a bullish outlook for Bitcoin through 2025.
