Bitcoin reached nearly $90,000 on Tuesday, driven by optimism around Donald Trump’s recent election as U.S. president and the belief that his administration will support cryptocurrency.
The leading cryptocurrency has become a standout performer since the election, peaking at $89,982—a 30% rise since November 5. It later eased back by 1.4% to around $86,730.
Bitcoin’s rally has been accompanied by a surge in Tesla’s shares, which have climbed nearly 40% since election results were announced. Investors anticipate that Trump’s allies and interests may benefit under his leadership.
“Crypto advocates see a kindred spirit in the incoming president,” noted Alvin Tan, head of Asia FX strategy at RBC Capital Markets. “The challenge with bitcoin is the absence of a clear valuation benchmark. This makes it prone to large swings when sentiment is high, more so than traditional assets.”
During his campaign, Trump embraced digital assets, pledging to make the U.S. a global hub for crypto and to establish a national reserve of bitcoin.
Although the details and timeline for such moves are uncertain, the prospect has fueled speculation, especially in crypto mining and trading stocks.
Matthew Dibb, chief investment officer at Astronaut Capital, remarked, “It might prompt other nations to acquire bitcoin as a preemptive move against the U.S. Such a scenario could also boost U.S.-listed bitcoin miners, who could even face nationalization.”
Crypto miner Riot Platforms surged nearly 17% on Wall Street Monday, while MARA Holdings and CleanSpark saw increases of almost 30%.
Software firm and bitcoin investor MicroStrategy recently announced it spent about $2 billion on bitcoin acquisitions between October 31 and November 10, boosting its shares by 26% on Monday.
“This is clearly a pro-Trump move,” said Nick Twidale, chief market analyst at ATFX Global in Sydney, regarding the bitcoin rally. “Trump’s support for the industry suggests higher demand for both crypto stocks and currencies.”
The excitement spread across the crypto market, lifting smaller tokens like ether and dogecoin, although they saw slight dips Tuesday morning in Europe.
Crypto investors are also optimistic about reduced scrutiny, as Trump has expressed intentions to replace SEC Chair Gary Gensler. Additionally, Trump launched a new crypto venture, World Liberty Financial, in September.
“This is more than just a price surge,” said Justin D’Anethan, head of Asia-Pacific business development at Keyrock. “It signals a broader acceptance of bitcoin as a potentially stable, even politically endorsed, asset.”