Bitcoin Surges to 80,000 Dollars: How Trump's Policies Are Fueling the Crypto Market

On Sunday, November 10, 2024, Bitcoin surged to a historic high above $80,000. This sharp rise came as anticipation built around the upcoming U.S. presidential election and continued climbing on election night as it became clear that Donald Trump would secure a win. Since his victory, Bitcoin has shown sustained growth, reaching levels previously unseen and energizing the crypto market.

Bitcoin has now risen by an impressive 80% this year, far outpacing the S&P 500's notable 25.7% year-to-date increase. Though it briefly surpassed the $80,000 milestone, by Sunday mid-morning, Bitcoin was trading just below that mark, continuing to capture market attention and setting high expectations among investors.

Trump's re-election is viewed as highly favorable for the cryptocurrency sector. While Trump was once skeptical about Bitcoin, famously dismissing it as "based on thin air," he has recently shown growing support for the digital currency market. This marks a stark contrast to the Biden administration's approach, which focused on more stringent regulation of crypto assets. This shift has led many in the industry to see Trump's presidency as a bullish signal for Bitcoin and other cryptocurrencies, with expectations of a more favorable environment for digital assets in the coming years.

One major factor driving Donald Trump’s newfound support for cryptocurrency is his direct financial investment in the industry. In September 2024, Trump, along with his children, launched a new cryptocurrency venture called World Liberty Financial. “The cryptocurrency industry is very young and rapidly growing,” Trump remarked during the launch on September 16. “I do believe in it.”

In contrast, the Biden administration maintained a more cautious stance toward digital assets. Securities and Exchange Commission (SEC) Chairman Gary Gensler described cryptocurrency as “ripe with fraud, scams, and abuses” in a 2021 address shortly after taking office. Throughout his tenure, Gensler’s SEC pursued several crypto companies, aiming to regulate an industry he partly classified as trading securities without proper registration. The SEC also partnered with agencies such as the Department of Justice to pursue crypto fraud, notably targeting Sam Bankman-Fried, the former CEO of FTX.

Though Gensler eventually approved a Bitcoin Exchange-Traded Fund (ETF), allowing retirement accounts to incorporate cryptocurrency exposure, he delayed its approval for years. In early 2024, a hack on Gensler’s social media account falsely announced the ETF’s release, briefly sending crypto prices soaring.

Trump expressed a clear vision for crypto’s role in America, suggesting that digital currencies could “define the future.” His proposal for a strategic national Bitcoin stockpile, similar to the country’s petroleum reserve, demonstrates his ambition to strengthen America’s stance in the crypto space. He emphasized that he wants crypto to be “mined, minted, and made in the USA.”

Elon Musk, one of Trump’s prominent supporters and a well-known advocate for cryptocurrency, has been a vocal proponent of digital assets. His favored cryptocurrency, Dogecoin, saw a 20% surge on Sunday and had been climbing throughout the prior week, underscoring the momentum Trump’s win has generated within the crypto market.