Bitcoin Soars to New All-Time High Above US$89,000/AU$135,500

It’s a good time to be a crypto investor with the value of Bitcoin surging past US$89,000 for the first time as investors speculated that Donald Trump’s return to the White House might bring favourable conditions for cryptocurrencies.

Bitcoin peaked at US$89,822 before slightly declining on Monday, marking a significant increase from its $37,000 value one year ago. Trump’s election has also influenced traditional markets, affecting currency values, specific stocks—most notably Tesla—and broader U.S. equities, as investors anticipate potential deregulation and tax cuts.

Previously, Trump had criticised Bitcoin as a “scam against the dollar,” but during his presidential campaign, he adopted a more positive stance on crypto, participating in events within the industry. This shift has fuelled expectations of regulatory ease, allowing retail investors greater access to digital assets, although Trump has yet to outline specific policies.

The impact of Trump’s win extended across global markets, boosting the U.S. dollar, which rose 0.6% on Monday, pushing the euro to its lowest point since May and decreasing the pound’s value to just under $1.29. Meanwhile, China’s Hang Seng index fell by 1.5%, as investors were reportedly underwhelmed by recent Chinese economic stimulus measures that focused on local debt support rather than broader fiscal incentives.

Other cryptocurrencies, including Ethereum and Dogecoin, saw price increases after the election. Tesla CEO Elon Musk, a vocal Trump supporter, experienced a $26.5 billion wealth boost post-election, as Tesla shares jumped nearly 9% due to hopes that the Trump administration would support advancements in autonomous driving technology.

Trump’s close connections to cryptocurrency advocates could further impact the sector. For instance, he supported a crypto venture, World Liberty Financial, led by his family—a move that could spark concerns about potential conflicts of interest if Trump advances crypto deregulation.

Ronald Temple, Lazard’s chief market strategist, noted that Trump had pledged to remove Gary Gensler, the Securities and Exchange Commission (SEC) chair, who has favored increased crypto regulation. This change could significantly alter the regulatory landscape for digital assets.

Publicly traded crypto companies are already seeing gains. Coinbase, a crypto exchange, has surged 40% since the election, with Microstrategy, a major Bitcoin investor, rising 26%. Analysts, such as Matt Simpson of City Index, have described this trend as a “Trump pump,” as traders foresee Trump’s presidency encouraging further cryptocurrency adoption.

Throughout the election campaign, Bitcoin’s price appeared to reflect Trump’s polling performance. It was trading below $70,000 on election day but has climbed nearly 20% since, with some forecasters suggesting it could exceed $100,000 in the coming days.