Bitcoin soared to a new record above $80,000 on Sunday, continuing its sharp rally in the lead-up to the US presidential election. The world’s largest cryptocurrency spiked on election night after Donald Trump’s win became clear and has maintained its upward momentum since.
Bitcoin has surged 80% this year, far outpacing the S&P 500’s impressive 25.7% gain. By mid-morning Sunday, bitcoin was trading just below the $80,000 mark after briefly hitting the milestone.
The crypto industry views Trump’s victory as a bullish signal for digital currencies. Despite his past skepticism—once calling bitcoin “based on thin air”—Trump has recently embraced the crypto space, a stark contrast to the Biden administration’s more restrictive approach.
A key factor behind Trump’s newfound support for crypto is his financial involvement. In September, Trump and his children launched World Liberty Financial, a new cryptocurrency venture. During the unveiling, Trump described the crypto industry as “young and growing,” adding, “I do believe in it.”
In stark contrast, the Biden administration maintained a more cautious stance. SEC Chairman Gary Gensler, known for his tough regulatory approach, referred to crypto in 2021 as “ripe with fraud, scams, and abuses.” Under Gensler, the SEC filed lawsuits against crypto firms, partnered with the Department of Justice to combat fraud, and played a key role in the high-profile case against FTX’s former CEO, Sam Bankman-Fried.
Although Gensler eventually approved a bitcoin exchange-traded fund (ETF), the approval followed significant delays. In January 2024, his social media account was hacked, falsely announcing that the ETF had launched, causing a brief cryptocurrency surge.
Trump, however, has taken an even bolder approach, proposing a “national bitcoin stockpile” akin to the US strategic petroleum reserve, aimed at securing the country’s crypto assets for national security. In August, he emphasized the need to ensure that cryptocurrencies are “mined, minted, and made in the USA.”
The crypto market has also gained momentum from Trump’s ally Elon Musk, a vocal cryptocurrency advocate. Dogecoin, Musk’s favored digital currency, surged over 20% on Sunday and had been climbing throughout the week, reflecting the broader excitement surrounding Trump’s policies and market influence.
