In a dramatic market shift reported by the Financial Times, Bitcoin has shattered all previous records, rocketing past $88,000 for the first time in history, as Donald Trump’s election victory sends shockwaves through the financial markets. This represents a staggering 10% surge in a single day, highlighting the cryptocurrency market’s explosive reaction to potential crypto-friendly policies under the incoming Trump administration.
The surge comes as Republicans strengthen their grip on Congress, having secured the Senate and moving closer to controlling the House of Representatives. According to the Financial Times’ analysis, investors are betting heavily on Trump’s pro-cryptocurrency stance, driving the total crypto market capitalization above $3 trillion for the first time in three years.
The ripple effects of Trump’s victory extended beyond cryptocurrencies, with crypto-adjacent stocks seeing remarkable gains. Coinbase surged nearly 20%, while Robinhood jumped 7.4%, and Tesla shares climbed 9%. David Bailey of BTC Inc, who organized the Bitcoin Conference where Trump spoke, sees this as a “transformational opportunity” for making America a global cryptocurrency powerhouse.
The dollar also showed significant strength, reaching a four-month high against other major currencies. The euro particularly felt the pressure, dropping to $1.063, its lowest point since April.
However, some economists are raising red flags about Trump’s proposed policies. His plans for steep tariffs, tax cuts, and potential Federal Reserve interference could potentially increase government deficits and reignite inflation concerns.
Despite these warnings, market sentiment remains overwhelmingly positive. As Scott Acheychek of REX Financial notes, “We are seeing absolute bullish sentiment,” with Bitcoin having gained approximately 20% since the election results began coming in.
The Trump administration is expected to take a lighter regulatory approach to cryptocurrencies, with discussions already emerging about creating a national bitcoin reserve. However, as Citi’s Drew Pettit cautions, “Markets are in euphoria territory right now,” suggesting that investors might be overlooking potential risks in their enthusiasm.
