Bitcoin has more than doubled from its annual low of $38,505, currently standing at $81,572 after reaching a peak of $81,899.
Bitcoin surged to an unprecedented peak of $82,000 on Monday, driven by anticipations of a cryptocurrency surge in a favorable regulatory landscape following Donald Trump's victory as U.S. president and the election of pro-cryptocurrency politicians to Congress.
The largest and most renowned cryptocurrency has more than doubled from its annual low of $38,505, recently reaching $82,236, after previously hitting a record high of $82,527.
Trump endorsed digital assets during his campaign, vowing to establish the United States as the "crypto capital of the planet" and to amass a national reserve of bitcoin.
“The Bitcoin Trump-pump remains robust. With Republicans poised to gain control of the House, signaling a potential red wave in Congress, the cryptocurrency community appears to be wagering on the deregulation of digital currency,” stated Matt Simpson, senior market analyst at City Index, alluding to Republican dominance in both legislative chambers.
Simpson cautioned that Trump's immediate concerns are likely to be focused elsewhere, while cryptocurrency investors anticipate a cessation of intensified oversight under U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has said he will dismiss.
The cryptocurrency sector invested over $119 million in support of pro-crypto congressional candidates, several of whom were victorious in their elections.
In Ohio, a prominent adversary of the cryptocurrency sector in Congress, Senate Banking Committee Chair Sherrod Brown, was defeated, while pro-cryptocurrency politicians from both the Democratic and Republican parties triumphed in Michigan, West Virginia, Indiana, Alabama, and North Carolina.
In September, Trump introduced a new cryptocurrency venture, World Liberty Financial. Despite the limited information regarding the business, investors perceive his personal engagement in the field as a positive indication.
Billionaire Elon Musk, a significant ally of Trump, is also an advocate for cryptocurrency.
Eric Trump, the son of the president-elect and executive vice president of The Trump Organization, will be a keynote speaker at a bitcoin conference in Abu Dhabi next month, as reported by the event organizers.
Deutsche Bank research analyst Marion Laboure stated that the forthcoming Trump administration might result in accelerated regulatory clarity, increased institutional involvement, greater market infrastructure, and wider mainstream acceptance.
"Trump's pragmatic strategy signifies a distinct divergence from recent regulatory constraints."
Capital inflows into bitcoin exchange-traded funds (ETFs) have increased following Trump's electoral victory.
On Thursday, November 7, bitcoin ETFs saw their highest inflows ever, attracting a net $1.38 billion, as reported by Citigroup.
Citi analysts stated in a note that there have been substantial inflows universally.
"ETF inflows have been the primary catalyst for Bitcoin returns, and we anticipate this trend will persist in the short term," they stated.
Cryptocurrency gains have been widespread. Ether surpassed $3,200 for the first time in more than three months over the weekend, currently priced at $3,182. Dogecoin, an alternative cryptocurrency that originated as a sarcastic commentary on the 2013 cryptocurrency boom, reached a three-year peak.
Cryptocurrency equities listed in the U.S. had a significant increase in premarket trading, with Coinbase Global rising over 16% and iShares Bitcoin Trust advancing by 7.3%.
Riot Platforms, a cryptocurrency miner, increased by more than 10%, while MicroStrategy, a prominent corporate supporter of Bitcoin, rose by 11.3%.
Laboure of Deutsche Bank anticipates that rate reductions by the Federal Reserve will foster a conducive atmosphere for the cryptocurrency industry.