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Bitcoin surges past $80,000 as Trump nears control of Congress and pledges crypto deregulation

November 11, 2024

Bitcoin hits a record $80,000 after Trump’s election victory, driven by promises to make the US a “crypto capital” and strip back regulations. Crypto markets brace for potential deregulation and SEC shakeup.

The price of bitcoin has surpassed $80,000 (£62,000) for the first time, buoyed by Donald Trump’s recent election victory and Republicans moving closer to full control of the US Congress.

With expectations for a more crypto-friendly administration, the world’s largest cryptocurrency has surged, marking an over 80% increase in value this year.

Trump’s campaign promises included making the US “the crypto capital of the planet,” and investors are now anticipating regulatory changes that could open up the cryptocurrency sector. He pledged to establish a strategic bitcoin stockpile and appoint regulators supportive of digital assets, potentially scaling back restrictions that have impacted the industry.

One of Trump’s expected early actions is the removal of current SEC chair Gary Gensler, who has led a robust crackdown on the crypto industry. Gensler, appointed by Joe Biden in 2021, has introduced regulations aimed at tightening oversight of digital assets—a stance that has clashed with the interests of crypto advocates. Trump’s potential replacement of Gensler with a crypto-friendly appointee could bring substantial changes to the sector.

“If the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector,” said Matt Simpson, market analyst at StoneX Financial. He added that, while bitcoin could surge to as high as $100,000, “it is still vulnerable to nasty selloffs along the way.”

The bullish sentiment has extended to other digital assets, including dogecoin, which has gained traction partly due to high-profile support from Trump ally Elon Musk. The Tesla CEO has publicly backed dogecoin on numerous occasions, further adding to its popularity.

Trump’s broader economic agenda, which includes tax cuts and reduced regulation for businesses, has spurred investment interest across various sectors. Should the Republicans achieve control over both the House and Senate, the president-elect’s policy proposals could face fewer obstacles in passing through Congress.

As markets respond to these anticipated policy shifts, some analysts caution that while deregulation could energise the crypto industry, it may also lead to increased volatility. With digital assets continuing their rise, the coming months could be pivotal for the future of cryptocurrency in the United States.