Bitcoin surged to an all-time high above $93,000 on Wednesday, driven by growing optimism in the cryptocurrency market following president-elect Donald Trump’s pledge to ease regulations on digital assets.
The world’s largest cryptocurrency has soared more than 30% in value since Trump’s victory in last week’s U.S. presidential election, breaking its previous record highs and surpassing the $90,000 mark for the first time on Wednesday.
Trump, during his campaign, expressed strong support for cryptocurrencies, stating his intention to make the United States the “bitcoin and cryptocurrency capital of the world,” a stance that has been well-received by crypto investors.
“The main catalyst for this dramatic rise in Bitcoin’s price is Donald Trump’s victory,” said Alexander Londono, a market analyst at ActivTrades. “Trump has long been an outspoken advocate for cryptocurrencies and has shown a willingness to deregulate the sector, making it more appealing for investors.”
Londono cautioned, however, that the rally is largely driven by emotions and future expectations, which may or may not materialize into long-term trends.
Broader Crypto surge
Bitcoin’s rally has also sparked a broader surge in other digital currencies, including Dogecoin, which has gained momentum thanks to support from Elon Musk, the CEO of Tesla.
“Bitcoin’s rise, along with the broader surge in cryptocurrencies, has ignited a wave of excitement and speculation across global markets,” said Stephen Innes, an independent market analyst.
The momentum in the crypto space has been further fueled by Trump’s announcement on Tuesday that Elon Musk will lead a new U.S. government-efficiency initiative aimed at cutting federal waste. Musk, a key ally to Trump during the campaign, is widely credited with spending over $100 million to help Trump win and promoting his candidacy on X (formerly Twitter), the social media platform Musk owns.
A history of Crypto volatility
Cryptocurrencies, including Bitcoin, have long been known for their extreme volatility, with dramatic price fluctuations and industry shake-ups like the collapse of the FTX exchange. Despite this, Bitcoin has continued to capture the public’s imagination since its inception in 2008 by the mysterious figure Satoshi Nakamoto.
The cryptocurrency is created, or “mined,” as a reward for solving complex computational problems that validate transactions on the blockchain, a decentralized digital ledger.
During Trump’s previous term as president, corporate tax cuts helped drive more liquidity into markets, spurring increased investment in assets like Bitcoin. In September, Trump announced plans to launch a digital currency platform, World Liberty Financial, alongside his sons and other entrepreneurs. However, the platform’s token sale earlier this month struggled to gain traction, with only a fraction of the tokens sold.
In a surprising twist during the election run-up, Trump reportedly became the first former U.S. president to make a purchase using Bitcoin, buying burgers at a New York City restaurant in what was hailed as a “historic transaction.”
