Bitcoin Hits Record High Amid Trump Victory

Bitcoin rose to a record high on Monday, extending last week's rally as sentiment towards cryptocurrencies was lifted by Donald Trump’s victory in the 2024 presidential election.

Broader Crypto Surge

Other crypto prices surged, with meme token Dogecoin rallying to a three-year high. An improved appetite for crypto led to a significant increase in capital inflows into investment vehicles over the past week, contributing to Bitcoin's strong gains. The largest cryptocurrency hit a record high of $81,792.4, trading around $81,193.4 by 00:18 ET (05:18 GMT).

Bitcoin's Gains Driven by Trump

Gains in Bitcoin and other cryptocurrencies were primarily driven by expectations that Trump will implement more crypto-friendly policies. Trump's pro-crypto campaign included a pledge to make America the crypto capital of the world, influencing traders' bets on a softened stance from the Securities and Exchange Commission and increased legitimacy for the industry as an investment.

Crypto ETFs See Significant Inflows

The optimism surrounding a Trump presidency led to substantial gains in crypto exchange-traded funds (ETFs). Bitcoin ETFs recorded a record $1.38 billion inflows last Thursday, with Blockrock’s iShares Bitcoin Trust (NASDAQ:IBIT) leading the charge, surpassing Blackrock’s gold ETF in total assets, reaching $34.1 billion compared to gold's $33 billion. Increased institutional interest following the launch of spot Bitcoin ETFs in U.S. markets earlier this year has been a major factor in the recent crypto market gains. Bitcoin's 2024 gains currently stand at about 91%.

Current Crypto Market Performance

While broader crypto markets have cooled since the rally, Dogecoin notably surged 24% to a three-year peak of $0.280991. This was primarily driven by speculation regarding Elon Musk's potential involvement in the Trump administration. Most major altcoins, however, saw mixed performance on Monday. Ethereum fell 1% to $3,152.49, despite being close to a three-month high, while XRP, SOL, ADA, and MATIC remained largely stable, moving less than 1% in either direction.