The price of bitcoin has risen above $80,000 (£62,000) for the first time ever, after Donald Trump’s decisive victory in the US election last week.
Trump’s Crypto Vision Sparks Market Surge as Republicans Near Full Control of Congress
The Republican Party is on the brink of controlling both the House and Senate, following their success in securing the presidency and a Senate majority. This potential shift in power aligns with the president-elect’s promise to make the United States the “crypto capital of the planet.”
As cryptocurrency markets react, the value of bitcoin—the world’s largest cryptocurrency—has soared by over 80% this year. Other digital assets, including dogecoin, have also seen gains, with high-profile Trump supporter Elon Musk frequently promoting the meme-based coin.
During his campaign, the president-elect outlined plans to bolster the crypto sector, pledging to build a strategic bitcoin stockpile and appoint crypto-friendly regulators to lead financial agencies. This agenda has fueled speculation that the administration will reduce regulations on digital assets, a move analysts say could push bitcoin prices even higher, potentially reaching $100,000.
One of Trump’s anticipated first actions in office is the removal of Gary Gensler, the current chair of the Securities and Exchange Commission (SEC). Appointed by Joe Biden in 2021, Gensler has been an advocate for stricter crypto regulations, a stance the incoming administration is likely to counter.
Financial markets have responded with optimism to the broader Republican agenda, which promises to cut taxes and reduce regulatory restrictions on businesses. With Republicans positioned to control both the executive branch and potentially the entire legislative branch, the administration’s policy goals could swiftly become law, paving the way for a less regulated and more dynamic crypto sector.
Market analyst Matt Simpson of StoneX Financial points out, however, that while deregulation could benefit the crypto sector significantly, “it is still vulnerable to sharp sell-offs, which can hit smaller investors especially hard.”
With these anticipated shifts in regulatory and fiscal policy, the stage is set for a new era in U.S. economic policy—one that could shape the future of both traditional and digital markets.
