Bitcoin Approaches $90K as Crypto Fans Rally on Trump Presidency

Donald Trump’s election victory has been a win for the world’s most popular cryptocurrency.

The price of bitcoin came close to $90,000 on Tuesday (Nov. 12), driven by continued enthusiasm for the advent of a pro-crypto White House, Reuters reported. The price of bitcoin had already climbed to a record $80,000 in the days following the election.

Also up, the report noted, is Tesla, with the carmaker surging 40% since the election. Investors, Reuters said, suspect Trump’s interests and allies — Tesla head Elon Musk has become one of his biggest cheerleaders — will flourish during his second presidency.

“The crypto enthusiasts think they have a like-minded incoming president,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

“The thing about bitcoin at the end of the day is that there is no valuation anchor to it, it’s hard to get a grip on fair value,” Tan said. “So when sentiment is very positive, it does get carried away a lot more than other asset classes.”

While Trump at one time had called cryptocurrencies a scam, he changed his tune during his third bid for the White House, pledging to turn the U.S. into the “crypto capital of the planet” and to establish a national bitcoin stockpile.

“Trump’s rebranding as a crypto-friendly candidate is part of a larger trend among Republicans to embrace digital currencies and blockchain technology,” PYMNTS wrote earlier this year.

“This strategy aims not only to attract a young and tech-savvy demographic but also to tap into the substantial financial resources of the crypto sector. By aligning with the interests of cryptocurrency enthusiasts, Trump and his party are seeking to leverage the political and economic potential of this burgeoning industry.”

The president-elect has also been a vocal critic of Securities and Exchange (SEC) Chair Gary Gensler, who has taken a tough stance on the crypto industry. Trump’s promise to replace Gensler with a more crypto-sympathetic regulator has led to speculation that the SEC would take a more hands-off stance under a new chair.

According to the nonprofit industry group Stand With Crypto, 250 “pro crypto” members of Congress were elected this year, along with 16 “pro crypto” senators.

“The potential for ongoing policy shifts could catalyze market growth but also raise new questions about risk, investor protections and the balance between innovation and oversight,” PYMNTS wrote last week.