Bitcoin Surges to a Record High of $75,345 Amid Anticipation of a Trump Victory Strengthening Cryptocurrency Market

LONDON (AP) — Amidst anticipations of favorable policies, the value of bitcoin reached unprecedented heights on Wednesday, complemented by a surge in cryptocurrency-related stocks triggered by predictions of a positive impact from former President Donald Trump’s triumph in the U.S. presidential election.

The digital currency bitcoin soared close to 8% in the early hours, crossing the $75,000 threshold and surpassing its peak from March. Aligned with this ascend, other digital currencies, such as ether, which holds the title of the second most favored cryptocurrency, experienced a similar 8% increase.

The meme-inspired cryptocurrency dogecoin, favored by tech magnate Elon Musk who is also a noted supporter of Trump, catapulted up to 18%.

Shares linked to the crypto market outperformed the broader stock exchange, with Coinbase, a leading exchange, soaring by 17%. Trading platforms such as Robinhood Markets that also facilitate crypto trading saw a 12% incline, while MicroStrategy, known for its substantial bitcoin holdings, experienced a 10% leap.

Former skeptic Trump has since ventured into endorsing cryptocurrencies prior to the election, advancing the notion of designating the U.S. as the global hub for crypto and proposing the creation of a “strategic reserve” of bitcoin. His campaign accepted financial contributions made in cryptocurrency, and he has vocalized his support to the crypto community by attending a bitcoin seminar in July. Additionally, he has embarked on a new initiative called World Liberty Financial, co-launched with family members to delve into cryptocurrency trading.

The climb for bitcoin this year has been impressive, boasting a 77% increase.

With Trump back in office, analysts like Russ Mould from AJ Bell wagered that bitcoin’s ascent was inevitable, igniting speculations on the digital currency’s potential to break the $100,000 mark. “Trump’s affinity for the crypto world has provided traders with fresh enthusiasm regarding bitcoin’s future trajectory,” Mould commented.

Nonetheless, some experts warn about crypto’s volatility, urging investors to cautiously only invest what they can afford to lose, as explained by Susannah Streeter of Hargreaves Lansdown, citing historical precedents of drastic market fluctuations. With Trump’s victory, players in the crypto space express optimism for anticipated legislative and regulatory reforms to foster a congenial environment for the industry.

Following Trump’s election, Coinbase CEO Brian Armstrong expressed a unanimous sentiment among crypto voters for regulation clarity, signifying the general public’s burgeoning interest in digital assets. Armstrong voiced his eagerness to work collaboratively with the incoming Congress to establish guidelines. Streeter predicts that the Trump administration might favor a relaxed regulatory approach that strikes a balance between lending credibility to crypto and sustaining innovation and opportunities.

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Contributing to this report is Associated Press writer Danica Kirka.