Bitcoin hits record $75,345 as traders expect Trump’s victory to boost cryptocurrencies

On By Littum

LONDON (AP) – The price of bitcoin hit a new high on Wednesday and crypto-related stocks rose as investors bet that former President Donald Trump’s victory in US presidential election will be a boon for cryptocurrencies.

Bitcoin jumped nearly 8% in early trading, climbing above $75,000 and smashing its previous record set in March. Other cryptocurrencies also rose sharply, including ether, the world’s second most popular cryptocurrency after bitcoin, which rose 8%.

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Another token, dogecoin, rose as much as 18%. It is favorite cryptocurrency by billionaire Elon Musk, one of Trump’s most prominent supporters.

Crypto-related stocks outperformed the rest of the stock market. Coinbase, one of the largest cryptocurrency exchanges, jumped 17%. Online brokerage Robinhood Markets, which offers crypto trading, rose 12% and MicroStrategy, which says it is the “largest corporate holder of bitcoin,” jumped 10%.

Trump was previously a crypto-skeptic, but changed his mind and embraced cryptocurrencies ahead of the election.

He has promised to make America “the crypto capital of the planet” and create a “strategic reserve” of bitcoin. His campaign accepted cryptocurrency donations, and he courted crypto fans at a bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.

Bitcoin is up 77% this year.

“Bitcoin is the one asset that would always go up if Trump returned to the White House,” said Russ Mould, chief investment officer at AJ Bell, a British online investment platform. After reaching its new high, the market is now wondering “when, not if, it will smash through $100,000,” he said.

“Trump has already declared his love for the digital currency, and crypto traders now have a new narrative to get even more excited about where the price could go,” Mold said.

But other experts warned of the risks.

“Investors should only dabble in crypto with money they can be prepared to lose,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Because we’ve seen these wild swings before.”

Crypto industry players welcomed Trump’s victory, hoping he would be able to push through legislative and regulatory changes they have long lobbied for.

Trump had already promised that, if elected, he would remove the chairman of the Securities and Exchange Commission, Gary Gensler, who has led the US Govt. repression on the crypto industry.

“Tonight, the crypto voter has spoken decisively — across party lines and in key races across the country,” Coinbase CEO Brian Armstrong said. “Americans care disproportionately about crypto and want clear rules of the road for digital assets. We look forward to working with the new Congress to deliver it,” Armstrong wrote on X.

Streeter said Trump’s administration would most likely pursue “light touch regulation” for the crypto industry.

“It’s definitely what crypto fans want,” she said. “They want the sheen of legitimacy to be brought to crypto, but they don’t want the regulations to be too burdensome to stop opportunity and innovation.”

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Associated Press writer Danica Kirka contributed to this report.