Bitcoin surged past $89,000 on Tuesday, reaching an all-time high, as investors rallied behind hopes of a crypto-friendly stance from President-elect Donald Trump. The rally, which pushed Bitcoin to $89,599 before settling at $87,800 in early Singapore trading, has marked a 30% rise since Trump’s election on November 5.
Trump, who was earlier a cryptocurrency critic, has reversed his stance, vowing to introduce friendlier regulations for digital assets. His Republican Party’s strengthened hold on the US Congress further fuels optimism that these policies will take shape. Notably, Trump’s agenda includes creating a U.S. Bitcoin reserve and enhancing domestic crypto mining—moves that signal a radical shift from the restrictive approach taken under President Joe Biden.
This pivot has revitalized the digital asset market. CoinGecko reported that the collective value of crypto assets now hovers around $3.1 trillion, an increase fueled by speculative trading and investor enthusiasm for the incoming administration’s potential crypto policies.
Meanwhile, companies with large Bitcoin holdings are doubling down. MicroStrategy, a prominent corporate investor, purchased 27,200 Bitcoin for about $2 billion between October 31 and November 10. Traders, however, remain uncertain about the timeline for Trump’s proposals or the feasibility of establishing a strategic Bitcoin reserve.
Bitcoin’s value has more than doubled in 2024, outpacing traditional investments like stocks and gold. The rally has been bolstered by the launch of dedicated U.S. Bitcoin ETFs and rate cuts by the Federal Reserve.
Crypto firms heavily supported Trump and pro-crypto candidates during the election campaign. Trump’s pivot from crypto sceptic to supporter has made Bitcoin, along with stocks and the U.S. dollar, a favoured asset in what’s being called a “Trump trade." The financial market response highlights the anticipation around Trump’s policies, which emphasize economic growth, tax cuts, and trade protection.
Other cryptocurrencies joined the rally, with Ether rising over 7% to $3,371 and Cardano gaining 4.7%. Dogecoin continued its upward trend with a 24% increase. Stocks linked to digital assets followed suit, with Coinbase closing up nearly 20% and MicroStrategy up by more than 25% in extended trading.
