Bitcoin is nearing the $90,000 mark, reaching a record high and surpassing its previous pandemic-era peak. The cryptocurrency has gained around 32% since the US election began on November 5, hitting an all-time high of $89,599 early Tuesday, according to Bloomberg data.
The rise is attributed to multiple factors, with market sentiment buoyed by positive expectations for cryptocurrency under the leadership of US President-elect Donald Trump, who has voiced support for the sector.
Nick Twidale, chief market analyst at ATFX Global, commented on the surge, noting that Trump’s pro-crypto stance has driven demand for cryptocurrency-related stocks and digital currencies. “Bitcoin was trading near its all-time high when the election result came in, meaning it had plenty of room to go higher,” Twidale said.
In related market moves, shares of cryptocurrency mining firm Riot Platforms climbed by 17% on Wall Street and continued to rise in after-hours trading.
However, Jesse Myers, co-founder of Onramp Bitcoin, suggested the surge may be more closely linked to the supply constraints following Bitcoin’s recent halving event rather than Trump’s potential impact. Writing on X, Myers stated that while a supportive government might act as a catalyst, the primary driver of the price surge is a supply-demand imbalance post-halving. Myers emphasised that supply reductions are pushing prices higher to meet demand, potentially spurring market excitement and speculative bubbles.
