In a historic development, Bitcoin BTC/USD has surpassed the $80,000 milestone, propelled by President-elect Donald Trump‘s supportive stance on cryptocurrencies and the potential for a crypto-friendly Congress.
What Happened: According to CoinMarketCap, Bitcoin’s value surged as much as 4.7% to an unprecedented $80,092 before falling back to around $79,700 early Sunday.
Bitcoin and other cryptocurrencies have seen a sharp rise, marking a significant day for liquidations. Data from Coinglass.com reveals that more than $430 million in derivatives positions were cleared in just 24 hours.
Digital currencies, such as Cardano ADA/USD and Dogecoin DOGE/USD, also experienced a surge.
During his campaign, Trump made commitments to place the US at the forefront of the digital-asset industry.
His strategies include establishing a strategic Bitcoin reserve and appointing regulators who are in favor of digital assets.
Also Read: This Crypto Analyst Sees Bitcoin Hitting $80,000 This Month
After last week’s election, the Republican Party, led by Trump, gained control of the Senate and is close to retaining a slim majority in the House.
Le Shi, the Hong Kong managing director at market-making firm Auros, told Bloomberg, “With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto.”
At the time of writing, Bitcoin was trading at $79,741.85, up by almost 5 per cent in the last 24 hours, 18% up in the last seven days.
Why It Matters: Bitcoin’s value has seen a 90% increase in 2024, driven by robust demand for dedicated US exchange-traded funds and interest-rate cuts by the Federal Reserve.
The surge in Bitcoin, which hit new highs following the US election, outperforms returns from other investments like stocks and gold.
This significant rise underscores the growing acceptance and adoption of digital currencies, further solidifying their place in the global financial landscape.
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