Bitcoin Reaches Record $82,000 Amid Expectations of Trump’s Support for Cryptocurrencies

The price of Bitcoin has surpassed $82,000 for the first time amid traders’ hopes that Donald Trump will support cryptocurrencies if he returns to the White House. Bitcoin reached a record high of $82,413 before slightly dropping to around $82,000, marking a gain of approximately 2.8% on Monday. Over the past year, the price has more than doubled from around $37,000.

Previously, Trump referred to Bitcoin as a “scam against the dollar,” but during the election campaign, he changed his stance, attracting the attention of the crypto community and participating in industry events. This has created expectations for a relaxation of regulations that could make it easier for retail investors to invest in Bitcoin and other cryptocurrencies, although Trump has yet to specify any concrete initiatives.

The trading influenced by Trump has spread to global markets since his advantage became clear, with the dollar strengthening in anticipation of increased spending by the U.S. government.

At the same time, investors in China are bracing for new high tariffs. Hong Kong’s Hang Seng index fell by 1.5% on Monday, and some investors noted that this represented an underwhelming response to China’s economic stimulus program announced last week.

Although the debt swap program aimed at bolstering local finances was worth about 10 trillion yuan (£1.1 trillion), economists at Deutsche Bank noted that it “disappointed market expectations as it lacked direct fiscal stimulus and targeted measures to improve the housing market.”

Since the election, prices for other cryptocurrencies, such as Ethereum and Dogecoin, which was previously backed by Elon Musk, the CEO of Tesla and owner of X, have also risen. Musk has become an outspoken Trump supporter, and his wealth increased by $26.5 billion shortly after the election results were confirmed.

Trump even expressed support for a cryptocurrency venture, World Liberty Financial, run by his family, a move that could invite criticism over potential conflicts of interest if he moves to deregulate digital assets. His son, Donald Trump Jr., stated that cryptocurrency offers an alternative to a banking system that he alleges is biased against conservatives.

Ronald Temple, the chief market strategist at Lazard, an investment bank, noted that Trump promised to fire Gary Gensler, the chair of the Securities and Exchange Commission, “on day one” of his presidency. “Gensler has advocated for stricter regulation of cryptocurrencies throughout much of his term,” Temple added.

The share prices of cryptocurrency companies also appear poised for growth. The crypto exchange Coinbase has surged by 40% since the election, and its share price rose another 16% in trading before the opening bell on Wall Street. Microstrategy, a software company whose founder has made significant purchases of Bitcoin, was up 12% in pre-market trading.

Bob Savage, head of market strategy and insights at BNY Mellon, a U.S. investment bank, stated that the Bitcoin price movement is one of the “Trump trades” that seems “central to gauging market sentiment” as investors try to understand the impact of the election. Matt Simpson, a senior market analyst at City Index, described the movements in crypto markets as a “Trump pump,” as traders bet that the president-elect will usher in a period of cryptocurrency adoption.

The price of Bitcoin has been correlated with Trump’s vote share in opinion polls during the election campaign against the Democratic candidate Kamala Harris. On election day, the price was below $70,000 but has since increased by nearly a fifth. Some market watchers believe the price could surpass $100,000 this week.

This surge has sparked a wave of excitement among cryptocurrency investors. Interest in cryptocurrencies typically rises as prices increase.