Bitcoin Nears $90,000 as Election of Trump Spurs Euphoria

The world's biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and touched $89,637 in Asia.

Bitcoin approached the cusp of $90,000 on Tuesday, extending a euphoric rally sparked by Donald Trump's US election victory on expectations his administration will be crypto-friendly.

The world's biggest cryptocurrency became one of the most eye-catching movers in the week since the election, hitting $89,637 in Asia - a gain of more than 25% since November 5.

It surged along with Elon Musk's automaker Tesla, which is up nearly 40% since voting results rolled in as investors bet on Trump's friends and interests faring well while he is in office.

“Obviously (it’s) a clear Trump trade as he is so supportive of the industry, and this can only mean more demand both for crypto stocks as well as the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney.

“The fact that bitcoin was trading near all-time highs when the election result came through meant that it had clean sky above.”

Trump embraced digital assets during his campaign, promising to make the US the “crypto capital of the planet” and to build up a national stockpile of bitcoin.

Exactly how or when that might happen needs to be clarified, but the prospect fuelled a speculative surge in crypto mining and trading stocks.

“I think it increases the chances that other nation states buy bitcoin in a bid to front run the US,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.

“Additionally, I think it would be a crazy catalyst for the US-listed Bitcoin miners … given possibilities of such entities getting nationalised.”

Crypto miner Riot Platforms jumped nearly 17% on Wall Street overnight and rose further in after-hours trade. Fellow miners MARA Holdings and CleanSpark both leapt nearly 30%.

Software company and bitcoin investor MicroStrategy announced it spent about $2 billion buying bitcoin between October 31 and November 10. Shares rose 26% and were still gaining in after-hours trade.

The euphoria spread across the crypto landscape, with smaller tokens such as ether and even one-time joke currency dogecoin also surging.

Crypto investors are betting on an end to increased scrutiny by US Securities and Exchange Commission Chair Gary Gensler, who Trump has said he will replace. Trump also unveiled a new crypto business venture, World Liberty Financial, in September.

“What we’re seeing isn’t just a price milestone; it’s a signal that the market is warming to the idea of bitcoin as a more stable, even politically favoured, asset,” said Justin D’Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock.

Read: GCC leaders congratulate Trump on historic election victory

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