The value of Bitcoin has reached unprecedented heights following Donald Trump’s re-election as US President. Throughout his campaign, Trump promoted a pro-cryptocurrency stance, vowing to establish the US as the “Bitcoin superpower” and create a national Bitcoin reserve. His victory is seen as a positive development for Bitcoin, which has surged past US$76,480 (A$116,390).
In addition, crypto-related stocks experienced significant gains, with Coinbase shares rising by 31 per cent. Under the Biden administration, the US had tightened its grip on cryptocurrency firms, with the Securities and Exchange Commission (SEC) launching legal actions against various entities. Trump hinted at potentially dismissing SEC Chair Gary Gensler if re-elected.
Notably, Tesla founder Elon Musk, a key Trump supporter and cryptocurrency advocate, had previously invested $1.5 billion in Bitcoin. Following Trump’s win, Tesla shares also rose 14 per cent, hitting a two-year high. This rally highlights the influence of political leadership on cryptocurrency markets and reflects a broader optimism towards the digital currency sector amidst significant regulatory scrutiny.