The leading cryptocurrency has more than doubled from its lowest point this year of $38,505, recently trading at $82,236 after hitting a high of $82,527 earlier in the day.
During his campaign, Trump expressed support for digital assets, vowing to position the United States as the "crypto capital of the planet" and to build a national reserve of bitcoin.
"Bitcoin's Trump-pump is thriving... with Republicans poised to gain control of the House, it appears the crypto community is anticipating a wave of digital-currency deregulation," stated Matt Simpson, senior market analyst at City Index, highlighting the potential Republican dominance in both legislative chambers.
While Simpson cautioned that Trump’s immediate focus may be directed elsewhere, cryptocurrency investors are hopeful for a reduction in the heightened scrutiny previously imposed by U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has indicated he would dismiss.
The cryptocurrency sector invested over $119 million in support of pro-crypto congressional candidates, many of whom emerged victorious.
In Ohio, a significant opponent of the crypto industry, Senate Banking Committee Chair Sherrod Brown, was defeated, while pro-crypto candidates from both major parties secured wins in states including Michigan, West Virginia, Indiana, Alabama, and North Carolina.
Additionally, Trump introduced a new cryptocurrency venture, World Liberty Financial, in September. Although specific details remain limited, investors view his engagement in the sector as a positive indication.
Billionaire Elon Musk, a prominent supporter of Trump, is also an advocate for cryptocurrencies.
Eric Trump, the son of the president-elect and executive vice president of The Trump Organization, is set to be a keynote speaker at an upcoming bitcoin conference in Abu Dhabi next month, as reported by the event organizers.
Marion Laboure, a research analyst at Deutsche Bank, noted that the forthcoming Trump administration could bring about quicker regulatory clarity, increased institutional involvement, enhanced market infrastructure, and wider mainstream acceptance.
“Trump’s practical approach signifies a notable shift from the recent regulatory constraints,” Laboure added.
Since Trump's election victory, there has been a notable increase in investments in cryptocurrency exchange-traded funds (ETFs). On November 7, bitcoin ETFs recorded their highest inflows ever, attracting a net total of $1.38 billion, according to Citigroup data.
Citi analysts commented, “There have been substantial inflows across the board. ETF inflows have been the primary catalyst for Bitcoin returns, and we anticipate this trend to persist in the near future.”
The cryptocurrency market has seen widespread gains, with Ether surpassing $3,200 for the first time in over three months, currently trading at $3,182. Dogecoin, which originated as a satirical take on the 2013 crypto boom, has reached a three-year peak.
In premarket trading, U.S.-listed cryptocurrency stocks experienced significant increases, with Coinbase Global rising over 16% and iShares Bitcoin Trust climbing 7.3%. Crypto miner Riot Platforms saw a surge of over 10%, while MicroStrategy, a major corporate supporter of bitcoin, gained 11.3%.
Laboure from Deutsche Bank also anticipates that potential rate cuts from the Federal Reserve will foster a favorable environment for the cryptocurrency sector.