Crypto Soars to New Heights with Bitcoin Approaching $90K Amid Trump Win

Bitcoin approached $90,000 on Tuesday as investors poured into digital currencies and crypto-related stocks, anticipating a crypto-friendly administration under the next president. The world’s largest cryptocurrency surged to $89,637 in Asia—a rise of over 25% since November 5—making it one of the market’s top performers since the election. Analysts attribute the rally to expectations that Donald Trump’s administration will be more accommodating to the crypto sector, with potential regulatory appointments that could favor industry growth. Trump has pledged to implement supportive regulations and even suggested building a national Bitcoin reserve, while crypto firms invested heavily in promoting pro-crypto candidates throughout the campaign.

In addition, many believe that Trump’s broader agenda of tax cuts, deregulation, and trade protection will boost business and the demand for digital currencies. The euphoria also boosted the stocks of companies that offer services to crypto, and crypto-related stocks outperformed the broader market on Monday. Shares of Coinbase, the largest bitcoin exchange, jumped 17%, online brokerage Robinhood Markets soared 12%, and MicroStrategy, which says it is the world’s largest corporate holder of bitcoin, rose more than 25%.

Analysts say the rally is likely to continue in the short term, but the longer-term trend for crypto remains uncertain as traders weigh whether to buy or sell. Investors should watch inflation and interest rates, which could affect Bitcoin’s attractiveness as a store of value.

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Investors are also concerned about the upcoming presidential inauguration and how much Trump might boost spending or raise taxes, which could hurt economic growth and weaken the dollar. A stronger dollar makes bitcoin more expensive for foreign holders, which can put pressure on prices.

In the medium to long term, bitcoin is still risky, and many visitors have made significant losses on their biting positions this year. Digital currency is vulnerable to price swings and has lost over 80% of its value since its peak in January 2015.

Crypto traders have been encouraged by developments such as the approval of a spot bitcoin ETF by regulators in February and the bitcoin Halving event in April, which reduces the supply of new coins, driving up demand. Traders also anticipate that the incoming Republican-controlled Congress will help push through reforms needed to make the blockchain more widely adopted in the financial sector.

The bitcoin price surged to a record high on Wednesday after the Securities and Exchange Commission said it would not block a Bitcoin ETF backed by Goldman Sachs. The SEC’s decision is the first significant step toward a formal ETF. However, the agency warned that the fund will not be available to all investors and may not be available at all retail brokers. Goldman’s fund will initially be offered to large institutional investors. It is expected to open up to retail investors later this month.