CryptoWire News Desk: Bitcoin surged to an unprecedented $80,000 on Sunday, marking a historic high as investors reacted to President-elect Donald Trump’s second-term victory and his crypto-friendly stance. This increase represents a broader market upswing in digital assets, with Bitcoin last trading near $79,800, up roughly 4.5% on the day, according to Coin Metrics. Ether, the second-largest cryptocurrency by market capitalization, also gained 3%, reaching $3,203 after breaching the $3,000 mark on Saturday, highlighting widespread enthusiasm across the crypto sector.
The bullish momentum extended to smaller cryptocurrencies, with many experiencing stronger gains as expectations grew for a more supportive U.S. regulatory environment. XRP, a prominent payments token, surged 11%, while the decentralized finance (DeFi) token associated with Cardano jumped by 40%. Meanwhile, “memecoins” Dogecoin and Shiba Inu saw gains of 17% and 31%, respectively, as retail investors showed renewed interest in speculative assets.
In a recent research note, Alex Thorn, head of research at Galaxy Digital, projected a “golden era” for crypto assets under Trump’s administration. Thorn cited Trump’s promises to make the U.S. the “crypto capital of the world” and noted the presence of high-level crypto advocates among his advisors and donors. “The pro-crypto nature of his team, family, and donors increases the likelihood that Trump follows through on his campaign promises to the industry,” Thorn stated, suggesting that regulatory shifts could offer significant tailwinds for the sector.
Bitcoin’s growth has been attributed in part to its status as a safe-haven asset among investors, with many viewing it as resilient to broader economic or political outcomes. Trump has previously expressed interest in establishing a strategic national bitcoin reserve and has emphasized the importance of keeping bitcoin mining activity within U.S. borders. The prospect of this supportive stance has further fueled optimism around crypto’s future in the U.S.
While Bitcoin has led the rally, Ether and other cryptocurrencies stand to benefit significantly from a pro-crypto administration. Unlike traditional Bitcoin exchange-traded funds (ETFs), spot Bitcoin ETFs, which do not offer staking rewards, have not gained as much traction. However, many in the crypto sector anticipate policy adjustments that could bolster investment structures for assets like Ether, making them more appealing to institutional investors.
Since election day, Bitcoin and Ether have posted impressive gains of 18% and 32%, respectively. This momentum has extended to crypto-related stocks, with shares of Coinbase surging 48% last week, marking its strongest performance since January 2023. With regulatory support expected to shift from a headwind to a tailwind, Thorn concluded, “What was once an oppressive headwind in the world’s largest capital market will now shift to a tailwind, and no one is bullish enough.”