In a historic rally, Bitcoin breached the $80,000 mark on Sunday, reaching a new all-time high amid excitement surrounding the U.S. presidential election outcome. The cryptocurrency giant began its rapid ascent days before Tuesday’s election, driven by speculation of a pro-crypto administration under Trump. Bitcoin surged even further on election night as Trump’s victory became apparent, and has continued climbing in the days following his win. This extraordinary performance by Bitcoin highlights the growing belief among investors and analysts that Trump’s presidency will bring a new, favorable era for digital currencies.
With Bitcoin’s 80% rise this year, it has easily outperformed traditional markets, overshadowing the S&P 500’s robust 25.7% gain. By Sunday morning, Bitcoin had briefly touched the $80,000 milestone before settling just below that mark, illustrating the heightened optimism in the cryptocurrency market. For many in the industry, Trump’s administration is seen as a critical turning point for crypto, marking a shift from previous regulatory skepticism to what is now expected to be a period of rapid growth and mainstream adoption.
Notably, Trump’s stance on cryptocurrency has evolved significantly. Once a skeptic, he famously criticized Bitcoin as “based on thin air” and questioned its value as a legitimate asset. However, his perspective took a clear turn in recent months, particularly as he and his family entered the crypto business. In September, Trump and his children launched a new venture, World Liberty Financial, dedicated to cryptocurrency investments and financial solutions. At the launch, Trump praised the potential of digital assets, calling the industry “very young and very growing,” and emphasizing his belief in its long-term value.
This stance represents a stark departure from the regulatory approach of the previous Biden administration, which focused on tightening oversight of the crypto industry. The Securities and Exchange Commission (SEC), under Chairman Gary Gensler, took a strict approach to cryptocurrency, raising alarms over fraud and illegal trading practices in the sector. Shortly after taking office, Gensler referred to crypto as “ripe with fraud, scams, and abuses” in a 2021 speech. The SEC’s regulatory stance included numerous lawsuits against crypto companies and leaders, most notably the high-profile case against Sam Bankman-Fried, the founder and former CEO of the crypto exchange FTX.
Gensler also moved cautiously on approving a bitcoin exchange-traded fund (ETF), a key demand from the crypto industry that would allow mainstream investors to add Bitcoin exposure in their retirement accounts. Though eventually approved, the ETF rollout was slow and marked by regulatory delays. In January 2024, Gensler’s official X account (formerly Twitter) was hacked, resulting in a false post that the bitcoin ETF had launched, briefly causing a spike in cryptocurrency prices—a testament to the market’s sensitivity to regulatory decisions.
Beyond regulatory changes, Trump has laid out an ambitious vision for the role of cryptocurrency in the U.S. economy. He has spoken of a future where digital currency can “define the future” and expressed a desire to see the U.S. become a major player in cryptocurrency production, calling for it to be “mined, minted, and made in the USA.” Trump has even proposed a strategic national reserve for Bitcoin, akin to the Strategic Petroleum Reserve, which would serve as a stockpile to enhance national economic security. This idea of a Bitcoin stockpile suggests that under Trump’s leadership, the U.S. could move towards a more integrated approach to digital assets, signaling a shift from viewing cryptocurrencies as alternative investments to treating them as vital national resources.
Meanwhile, Elon Musk, an ardent supporter of Trump and a prominent crypto advocate, has fueled enthusiasm in the digital currency market as well. Known for his outspoken support of Dogecoin, Musk has long been a champion of decentralized finance and alternative currencies. Following Trump’s victory, Dogecoin surged over 20% on Sunday, adding to its strong gains from the previous week. Musk’s alignment with Trump’s crypto-friendly stance further strengthens investor confidence, as the combined influence of both leaders points towards a new era for digital currency in America.
The crypto industry, often seen as a volatile and risky market, now stands at the brink of mainstream acceptance, with Trump’s presidency potentially heralding a period of more inclusive policies and an open regulatory environment. Investors and industry leaders alike are looking forward to a future where cryptocurrency holds a place not just in private investments, but also as an essential part of national economic strategy.
