Bitcoin Hits Record High Following Trump’s Victory

Bitcoin rose to a record high on Monday, extending last week’s rally as sentiment toward cryptocurrencies improved following Donald Trump’s victory in the 2024 presidential election.

Broader crypto prices surged, with meme token Dogecoin reaching a three-year high.

Improved appetite for crypto sparked significant capital inflows into investment vehicles, contributing to Bitcoin’s strong gains. The world’s largest cryptocurrency hit a record high just below $82,500, trading around $82,121.0 as of 09:09 ET (14:09 GMT).

Bitcoin Remains Buoyed by Trump Cheer

Bitcoin and other cryptocurrencies gained primarily due to expectations that Trump will implement more crypto-friendly policies in the next four years. Trump campaigned on a pro-crypto platform and promised to make America the crypto capital of the world, driving traders to hope for a softer stance from the SEC and greater legitimacy for the industry.

Crypto ETFs See Bumper Inflows

Optimism regarding a Trump presidency resulted in significant gains for crypto exchange-traded funds. Bitcoin ETFs witnessed record inflows of $1.38 billion last Thursday, particularly benefiting Blockrock’s iShares Bitcoin Trust, which surpassed Blackrock’s gold ETF in total assets.

Institutional interest in crypto has surged this year, especially after the introduction of spot Bitcoin ETFs in U.S. markets. Bitcoin’s recent gains mean it has risen about 91% so far in 2024.

Buy Everything You Can, Bernstein Says

According to Bernstein analysts, Trump’s victory signals the start of a new crypto bull market, urging investors to “buy everything you can.” They predict a crypto-friendly regulatory environment under Trump, including the potential for a national Bitcoin reserve by 2025.

Bernstein maintains a confident Bitcoin price target of $200,000 by 2025, deeming the current risk-reward ratio favorable.

Crypto Price Today: Altcoins Cool, But DOGE Shines

Broader crypto markets cooled after the recent rally, with major altcoins mixed on Monday. Dogecoin saw an exceptional 29% surge to a three-year peak, fueled by speculation that Elon Musk might join the Trump administration. Other altcoins retreated, with second-largest cryptocurrency Ether falling 1% to $3,170.31, while SOL gained over 5%.

Ambar Warrick contributed to this report.