Bitcoin’s Record-Breaking Rally
Bitcoin neared $90,000 on Tuesday, driven by optimism after Donald Trump’s election as U.S. president. The world’s largest cryptocurrency reached $89,637 in Asian trading, marking a 25% surge since November 5. Analysts link this significant rise to expectations of a pro-crypto stance under Trump’s administration. The boost has positioned bitcoin as one of the most notable financial stories since the election while also lifting crypto stocks tied to the sector.
Nick Twidale, chief market analyst at ATFX Global in Sydney, stated, “Obviously (it’s) a clear Trump trade as he is so supportive of the industry, and this can only mean more demand both for crypto stocks as well as the currencies themselves.” Bitcoin’s rise was aided by its near all-time high levels before the election, providing a “clean sky above” for further gains.
Trump’s Crypto Ambitions
Trump’s vocal endorsement of digital assets during his campaign has further fueled this market enthusiasm. He pledged to transform the U.S. into the “crypto capital of the planet” and hinted at building a national bitcoin reserve. While details on the timeline and methods remain vague, these statements have sparked speculative activity in crypto trading and mining stocks.
Matthew Dibb, chief investment officer at Astronaut Capital, pointed out, “I think it increases the chances that other nation states buy bitcoin in a bid to front run the U.S.” He added that U.S.-listed bitcoin miners might see significant gains or even nationalization under Trump’s leadership. This sentiment was reflected in the stock market, where crypto miner Riot Platforms gained nearly 17% during regular trading and continued to rise after-hours. MARA Holdings and CleanSpark recorded even greater jumps of nearly 30%.
Crypto Stocks and Investor Sentiment
The positive sentiment around bitcoin extended to other areas of the crypto stock market. MicroStrategy, a software company and bitcoin investor, announced a $2 billion acquisition of bitcoin between October 31 and November 10, boosting its shares by 26%. Smaller cryptocurrencies like ether and dogecoin also experienced gains, highlighting the widespread impact of the bitcoin rally.
A shift in regulatory pressure is another factor driving investor optimism. Trump has expressed plans to replace U.S. Securities and Exchange Commission Chair Gary Gensler, a move that many in the crypto space view favorably. Justin D’Anethan, head of Asia-Pacific business development at Keyrock, remarked, “What we’re seeing isn’t just a price milestone; it’s a signal that the market is warming to the idea of bitcoin as a more stable, even politically favored, asset.”
Trump’s commitment to the industry was further demonstrated with the launch of World Liberty Financial, a new crypto-focused venture, in September. This combination of policy and business initiatives has generated hope among investors for a new phase of growth and more relaxed regulations in the U.S. crypto stock market.
