Monday, December 23

Bitcoin hits $80,000 for the first time as crypto traders bask in Trump election victory

Cryptocurrencies

extended their rally

on Sunday, with

bitcoin

touching $80,000 for the first time ever.

The price of the flagship cryptocurrency was last higher by 4.5% at $79,800.19, according to Coin Metrics.

Ether

rose 3%, after passing the $3,000 level on Saturday. It last changed hands at $3,203.10.

Smaller coins saw bigger moves as investors continued to digest the implications of a second term for President-elect Donald Trump. The payments coin

XRP

surged 11%. The decentralized finance token tied to

Cardano

rocketed 40%. Memecoins

dogecoin

a

nd Shiba Inu

coin soared 17% and 31%, respectively.

“Crypto is poised to enter a golden era,” Alex Thorn, head of research at Galaxy Digital, said in a research note Friday. “Trump has promised to make America the ‘crypto capital of the world’ and his high level team is filled with strong crypto advocates … . The pro-crypto nature of his team, family, and donors increases the likelihood that Trump follows through on his campaign promises to the industry.”

Bitcoin was deemed a safe asset regardless of the outcome of the election — it is not considered a security, even by the Securities and Exchange Commission, and Trump has made big overtures about bitcoin like entertaining the idea of a strategic national bitcoin reserve and speaking about the need to keep all bitcoin mined in America.

Ether and other cryptocurrencies, however, stand to gain much more from the crypto-friendly regulatory environment that Trump has promised and appears to be a priority for many in his inner circle. For example, one reason the spot bitcoin ETFs didn’t see as much success as bitcoin ETFs is because they don’t distribute staking rewards. Many in the industry are hopeful that will change next year.

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“In this environment, over the next two years we expect that bitcoin and other digital assets will trade significantly higher than the current all-time high,” Thorn said. “What was once an oppressive headwind in the world’s largest capital market will now shift to a tailwind, and no one is bullish enough.”

Bitcoin and ether have gained 18% and 32%, respectively, since election day.

Coinbase

rose 48% last week, its best week since January 2023.

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