Bitcoin’s price surged past $82,000 on Monday, marking a new high in the ongoing rally of cryptocurrencies following Donald Trump’s victory in the election. The price of bitcoin reached $80,000 for the first time ever on Sunday, showing a 3.6% increase to $82,216 by 6:58 a.m. ET on Monday, according to Coin Metrics.
In addition to bitcoin, other cryptocurrencies also experienced gains, with ether rising by 1.8% to trade around $3,204 after surpassing $3,000 over the weekend. The decentralized finance token linked to Cardano increased by 2.7%, while the payments coin XRP took a pause. Memecoins like dogecoin and Shiba Inu coin also saw growth, with increases of almost 11% and 5%, respectively.
Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, pointed out that the surge in the crypto market is due to the “euphoria” following Trump’s election win. Trump’s recent support for the crypto industry has driven bitcoin to new highs, with speculators anticipating a more favorable regulatory environment and the establishment of a reserve crypto fund in the U.S.
During his campaign, Trump made various promises to the crypto industry, including plans to make the U.S. the “crypto capital of the planet” and advocating for all bitcoin mining to take place in the country. Despite his promises to replace U.S. Securities and Exchange Commission Chairman Gary Gensler, analysts are cautious as the president does not have the authority to do so.
Citi strategists highlighted that crypto remains one of the few Trump trades that have not retraced, citing expectations of a crypto-friendly administration leading to regulatory clarity in the U.S. In the days following the election, spot crypto ETFs witnessed significant inflows, with BTC and ETH ETFs receiving $2.01 billion and $132 million in net inflows, respectively.
Looking ahead, analysts predict that the upward trend in crypto prices will continue, with some forecasting bitcoin to reach the $100,000 milestone by the end of the year. The increasing popularity and investment in cryptocurrencies reflect a growing confidence in the digital asset market and its future prospects.
