For the first time ever, the price of bitcoin has surpassed $80,000 (£62,000) following Donald Trump’s resounding win in the U.S. election last week.
It occurs as the Republicans, who have already won the presidency and a majority in the Senate, are getting closer to taking control of Congress as a whole.
The president-elect promised to make the US “the crypto capital of the planet” throughout the campaign.
This year, the value of the largest cryptocurrency in the world has increased by almost 80%.
Promoting
Other cryptocurrencies are also rising, such as dogecoin, which has been pushed by well-known Trump supporter Elon Musk.
Expectations that Trump will loosen rules on the cryptocurrency business were sparked by his statements in the lead-up to the election that he would establish a strategic bitcoin stockpile and designate bank regulators who are receptive to digital assets.
Trump has stated that firing Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), will be one of his first acts as president.
Joe Biden appointed Mr. Gensler in 2021, and he has spearheaded the SEC’s campaign against the cryptocurrency sector.
“If the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector,” Matt Simpson, market analyst at StoneX Financial told the BBC, adding that such a move could lead bitcoin prices to jump to as high as $100,000.
But “it is still vulnerable to nasty selloffs along the way – which can be less kind to smaller pockets,” he added.
Since winning the election, Trump’s larger agenda—which includes lowering taxes and business regulations—has also fueled a boom in other investments.
Republicans will be able to push his proposals through each chamber and send those laws for his signature into law since they control the executive and maybe both legislative arms of government.