Bitcoin reached a new milestone on Monday, surging past $89,000 as the cryptocurrency market continues to thrive in the wake of Donald Trump’s election victory. The flagship digital asset climbed over 12% to hit $89,174, briefly peaking at $89,623, according to Coin Metrics. Ether also experienced significant gains, rising more than 7% to $3,371.79 after a remarkable 30% increase over the past week that brought it back above the $3,000 threshold.
Other cryptocurrencies followed suit, with Cardano’s decentralized finance token increasing by 4.7% and Dogecoin soaring nearly 24%. In the stock market, Coinbase shares jumped by 19.8%, while MicroStrategy saw an impressive rise of over 25.7%. Both companies continued to perform well in after-hours trading.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, attributed this crypto rally to the “euphoria” surrounding Trump’s presidential win. She noted that his commitment to supporting the cryptocurrency sector has propelled Bitcoin to unprecedented heights. “His pledge to go all in on crypto has sent Bitcoin to fresh heady heights,” she stated in a research note.
During his campaign, Trump made several promises aimed at the crypto community, including transforming the U.S. into the “crypto capital of the planet” and advocating for all Bitcoin mining to occur domestically. He also expressed intentions to replace Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), known for his stringent regulatory stance on cryptocurrencies.
Analysts are optimistic about Bitcoin’s trajectory, with some predicting it could reach $100,000 following Trump’s election victory. Citi strategists highlighted that cryptocurrencies have been one of the few sectors benefiting from Trump’s win, anticipating a more favorable regulatory environment under his administration. They noted substantial inflows into cryptocurrency exchange-traded funds (ETFs) following the election results—$2.01 billion for Bitcoin ETFs and $132 million for Ethereum ETFs within just two days.
Looking ahead, many analysts believe that Bitcoin is set for continued growth, with some forecasting it could reach six figures by year-end. However, they also caution about potential risks associated with Trump’s economic policies, which could lead to inflationary pressures that might impact cryptocurrency markets.
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