President-elect Donald Trump’s pro-crypto position and the potential for pro-crypto politicians in Congress ignited a surge of confidence that propelled Bitcoin to an all-time high of about $80,000. Bloomberg reports that the cryptocurrency rose 4.3% to $79,771 on Sunday and was still trading at around $79,000 at 2:05 PM in Singapore. Smaller currencies like Cardano and Dogecoin also saw growth in value, in addition to Bitcoin.

Trump made it clear throughout his campaign that he wanted to lead the digital asset sector in the United States. Creating a Bitcoin hoard and selecting authorities that support cryptocurrency innovation are two aspects of this concept. Investors are expecting strong support for crypto-friendly legislation as a result of Trump’s resounding victory on Tuesday.

“With Trump’s pro-crypto stance gaining traction, a Bitcoin rally was almost inevitable as market confidence grows,” said Le Shi, managing director of market-making firm Auros. 

Due to the Federal Reserve’s rate reduction and the robust demand for U.S. exchange-traded funds (ETFs), Bitcoin has seen amazing success in 2024, rising 90% year-to-date. The appeal of digital investments is highlighted by the fact that this increase has surpassed returns from more conventional assets like stocks and gold.

Surge in ETF Demand
Trading volume reached an all-time high on Thursday, as the $35 billion BlackRock iShares Bitcoin Trust had a net inflow of $1.4 billion. As ETFs create new avenues for Bitcoin investment, investors are paying attention to Trump’s possible effects on the industry.

In sharp contrast to Trump’s pro-business posture, President Biden’s administration imposed strict regulations on digital assets. Because of worries about fraud and poor management, the SEC, led by Gary Gensler, increased its surveillance after FTX’s collapse in 2022. 

“The chances of passing pro-crypto legislation are higher than ever before, with Trump’s commitment to supportive regulation and a Congress ready for change,” according to Noelle Acheson, author of the “Crypto Is Macro Now” newsletter.

In anticipation of a regulatory environment that is more welcoming to cryptocurrency, digital asset businesses aggressively supported candidates who would benefit their sector.

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