Bitcoin tops record $80,000 as Trump nears sweep of US Congress

Bitcoin has surged to a record high, surpassing $80,000 (£62,000) for the first time in its history, following Donald Trump’s decisive victory in the US election last week. The rise in the cryptocurrency’s value comes amid expectations of significant changes in US financial and regulatory policy, as Trump’s victory gives the Republican Party increased control over Congress.

With Republicans now poised to secure overall control of Congress after winning the presidency and a majority in the Senate, the political climate appears favorable for Trump’s pro-crypto agenda. During his campaign, the president-elect pledged to make the United States “the crypto capital of the planet,” a promise that has fueled optimism in the cryptocurrency market.

Bitcoin’s meteoric rise—up more than 80% this year alone—reflects broader investor confidence in the crypto market. Other cryptocurrencies, including dogecoin, which has received backing from prominent Trump supporter Elon Musk, have also seen substantial gains.

In the lead-up to the election, Trump outlined plans to create a strategic Bitcoin stockpile and appoint digital asset-friendly regulators to foster the growth of the cryptocurrency industry. These proposals sparked widespread anticipation that, under a Trump administration, regulatory hurdles facing the crypto industry would be reduced or eliminated. Investors are now betting that Trump’s administration will take a more hands-off approach, paving the way for further price increases in Bitcoin and other digital assets.

Trump has also signaled that one of his first actions as president would be to remove Gary Gensler, the current chair of the Securities and Exchange Commission (SEC). Gensler, appointed by President Joe Biden in 2021, has overseen a series of crackdowns on the crypto industry, leading some in the sector to view him as an obstacle to its growth. Trump’s stated intention to replace Gensler with a more crypto-friendly official is seen as a significant potential catalyst for Bitcoin and other cryptocurrencies.

“If the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector,” said Matt Simpson, a market analyst at StoneX Financial, in an interview with the BBC. He added that the prospect of a friendlier regulatory environment could propel Bitcoin’s price even higher, possibly reaching $100,000. However, Simpson also warned that the crypto market remains highly volatile, with the potential for sharp sell-offs that could impact smaller investors.

Trump’s broader economic agenda, which includes reducing corporate taxes and cutting back on regulations for businesses, has also contributed to a surge in broader financial markets. Since his victory in the election, stock indexes, the US dollar, and government bonds have all seen notable gains, reflecting investor optimism about the Republican-controlled government’s economic policies.

With Republicans now in charge of both the executive and, potentially, both chambers of the legislative branch, Trump will be in a strong position to push through his policy agenda. This includes not only crypto-related reforms but also tax cuts, deregulation measures, and a pro-business approach that could further stimulate economic growth. The GOP’s control over Congress means that Trump’s proposed legislation could be passed more easily, allowing him to quickly implement his agenda once in office.

Despite the enthusiasm surrounding Trump’s potential influence on the crypto market, experts caution that Bitcoin’s rapid price rise could face challenges in the near term. While the prospect of deregulation and pro-crypto policies is seen as positive for the sector, the market remains highly speculative and subject to swings in investor sentiment. A significant sell-off in the crypto market or unexpected regulatory changes could lead to sharp declines in prices.

Nevertheless, the overall outlook for Bitcoin and the wider cryptocurrency market appears optimistic, with many viewing Trump’s impending presidency as a potential turning point for the sector. If his administration follows through on its promises to create a more favorable regulatory environment, it could lead to further growth in Bitcoin’s value and solidify its place as a mainstream financial asset.

As the political landscape shifts in Washington, cryptocurrency investors are keeping a close eye on developments, hoping that a pro-crypto government will support the sector’s continued expansion. With Trump’s victory and the possibility of a more crypto-friendly regulatory environment, Bitcoin and other digital assets are likely to remain in the spotlight, with potential for significant gains in the months and years ahead.