Bitcoin has surged to $89,637, rising over 25% since November 5, amid optimism following recent election results. This rally parallels a nearly 40% increase in Tesla’s stock, reflecting investor confidence in the new administration’s pro-cryptocurrency stance, particularly under former President Trump. His ambition for the U.S. to become the “cryptocurrency capital” has sparked interest in mining and trading. Wall Street saw notable gains in crypto stocks, while smaller tokens also experienced significant increases.
The Surge of Bitcoin Post-Election
The world’s leading cryptocurrency has captured significant attention this week, soaring to an impressive $89,637 in Asia—a remarkable increase of over 25% since November 5. This surge is indicative of a larger trend following the recent election.
Influence of Political Dynamics on Cryptocurrency
Bitcoin’s impressive climb coincides with a surge in Tesla’s stock, which has risen nearly 40% following the election results. Investors are optimistic that the new administration will favor their interests, particularly those connected to former President Trump.
Nick Twidale, the chief market analyst at ATFX Global in Sydney, notes, “This movement is clearly tied to Trump, who has been a strong supporter of the cryptocurrency sector. This likely translates into heightened demand for both cryptocurrency stocks and the currencies themselves.” He further adds that bitcoin was trading close to its historical highs at the time of the election results, indicating a positive outlook ahead.
During his campaign, Mr. Trump expressed his ambition for the United States to become the “cryptocurrency capital of the world,” proposing to build a national reserve of bitcoins. Although the specifics of how this will materialize remain unclear, the prospect has sparked speculative interest in cryptocurrency mining and trading stocks.
Matthew Dibb, chief investment officer at Astronaut Capital, suggests that this development could prompt other nations to acquire bitcoins to maintain a competitive edge over the U.S. He believes it could also act as a significant catalyst for publicly traded bitcoin miners in the country, particularly with the potential for nationalization of these companies.
Wall Street saw a notable increase in cryptocurrency-related stocks, with Riot Platforms climbing nearly 17% overnight and continuing its rise in after-hours trading. Other miners like MARA Holdings and CleanSpark experienced gains of nearly 30%.
Meanwhile, software publisher and bitcoin investor MicroStrategy announced a substantial investment of approximately $2 billion in bitcoins from October 31 to November 10. This move resulted in a 26% increase in their stock, which also continued to rise in after-hours trading.
The enthusiasm for cryptocurrencies has spread across the market, with smaller tokens such as ether and even the novelty coin dogecoin experiencing significant jumps. Investors are optimistic about a potential reduction in regulatory scrutiny under Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission, whom Trump has indicated he wants to replace. Additionally, Trump launched a new cryptocurrency venture called World Liberty Financial in September.
Justin D’Anethan, head of business development for Asia-Pacific at digital asset market maker Keyrock, emphasizes that this price surge is more than just a milestone; it signals that the market is beginning to view bitcoin as a more stable asset, particularly in a politically favorable environment.