The price of bitcoin reached a new high on Wednesday as investors bet that the victory of Donald Trump in the US presidential election would be a boost for cryptocurrencies.
Bitcoin rose nearly 8% in morning trading, surpassing $75,000 and breaking its March record. Other cryptocurrencies also surged, including ether, the second most popular cryptocurrency in the world after bitcoin, which appreciated by 8%.
Trump used to be skeptical about cryptocurrencies, but changed his mind before the elections.
He promised to turn the United States into "the crypto world capital" and create a bitcoin "strategic reserve." His campaign accepted donations in cryptocurrency and courted crypto enthusiasts at a conference in July. He also launched World Liberty Financial, a new company with members of his family to trade cryptocurrencies.
Bitcoin has risen 77% this year.
"Bitcoin is the only asset that was always going to surge if Trump returned to the White House," said Russ Mould, chief investment officer at AJ Bell, a British cryptocurrency platform. After reaching its new high, the market is now speculating on "when, not if, it will surpass $100,000," he said.
"Trump has already declared his love for digital currency, and crypto users now have a new narrative to get even more excited about where the price could go," Mould stated.
Crypto industry actors welcomed Trump's victory, hoping that he could push forward the legislative and regulatory changes they have long requested.
Trump had already promised that, if elected, he would remove the Securities and Exchange Commission (SEC) president, Gary Gensler, who has been leading the US government's battle against the cryptocurrency sector.
“Tonight, the crypto voter has spoken decisively - across party lines and in key contests throughout the country,” said Brian Armstrong, CEO of Coinbase, one of the largest cryptocurrency platforms. “Americans disproportionately care about crypto and want clear rules of the game for digital assets. We look forward to working with the new Congress to achieve this,” Armstrong posted on the social network X.