Bitcoin price soared to $80,000 fueled by Donald Trump's election victory

Key points:

1. Bitcoin reached $80,000 for the first time, as investors processed the potential impact of a second term for President-elect Donald Trump.
2. Bitcoin is increasingly seen as a safe-haven asset, with its value holding steady regardless of election results.
3. Other cryptocurrencies, such as Ether and XRP, could stand to benefit even more from a Trump presidency, with many expecting his policies to favor further growth in the crypto space.

Bitcoin price surged to an all-time high of $80,000, driven by optimism surrounding Donald Trump's election victory. The cryptocurrency market rallied as investors speculated that Trump's pro-crypto stance would lead to favorable policies for digital assets. With Trump's promises to make America the "crypto capital of the world" and his growing support among industry advocates, many believe this victory could signal the start of a new era for cryptocurrencies.

Cryptocurrencies continued their upward momentum on Sunday, with Bitcoin reaching an all-time high of $80,000 for the first time.

The leading cryptocurrency was last up 4.5%, trading at $79,800.19, according to Coin Metrics. Meanwhile, Ether gained 3%, crossing the $3,000 mark on Saturday and was last priced at $3,203.10.

Smaller Cryptos Surge as Investors Bet on Trump's Pro-Crypto Agenda

Smaller cryptocurrencies saw even bigger gains as investors weighed the potential impact of a second term for President-elect Donald Trump. XRP, the payments-focused coin, surged 11%, while the decentralized finance token linked to Cardano soared 40%. Memecoins also posted impressive gains, with Dogecoin jumping 17% and Shiba Inu rising 31%.

“Crypto is poised to enter a golden era,” said Alex Thorn, head of research at Galaxy Digital, in a research note on Friday. “Trump has pledged to make America the 'crypto capital of the world,' and his team is full of strong crypto advocates. With the pro-crypto stance of his team, family, and donors, the chances of Trump delivering on his campaign promises to the industry have greatly increased.”

Bitcoin has been viewed as a safe asset regardless of election results, not classified as a security by the SEC, and gaining attention from President-elect Trump, who has made notable proposals like the creation of a strategic national bitcoin reserve and supporting the idea of keeping all bitcoin mining operations within the U.S.

Ether and Digital Assets Set for Big Gains as Trump’s Pro-Crypto Policies

However, other cryptocurrencies, like Ether, stand to benefit even more from Trump’s promised pro-crypto regulatory stance, which is gaining strong support within his inner circle. For example, one reason spot bitcoin ETFs haven't been as successful as traditional bitcoin ETFs is that they don't offer staking rewards. Many in the crypto industry are optimistic that this will change in the near future.

“In this new environment, we expect Bitcoin and other digital assets to trade well above current all-time highs over the next two years,” said Alex Thorn, head of research at Galaxy Digital. “What was once a headwind in the world’s largest capital market will now become a tailwind, and no one is bullish enough.”

Since Election Day, Bitcoin and Ether have gained 18% and 32%, respectively. Coinbase saw a notable 48% rise last week, marking its best week since January 2023.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.