Bitcoin Hits New High Over $82k on Hopes of Trump’s Pro-Crypto Policies

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

November 11, 2024 00:39 EST

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Bitcoin reached a record high above $82,000 on Monday, fueled by Donald Trump’s pro-crypto stance following his election as President-elect and the potential for a crypto-friendly Congress. As a result, other coins like Solana, Cardano and Dogecoin also saw significant gains.

It last traded around $82,327 as of 5:20 am ET, up 3.8% on the day.

The cryptocurrency market has been soaring to unprecedented peaks recently, while US stocks have enjoyed their most impressive performance of the year. The surge pushed Bitcoin’s market capitalization to $1.6 trillion, raising the total crypto market valuation to $2.8 trillion.

Further, Bitcoin’s price surge led to the liquidation of 211,649 traders, with total liquidations reaching $624.9m in the past 24 hours, according to CoinGlass.

Bitcoin Market Poised for Growth Amid Trump’s Pro-Crypto Presidency

The election of a pro-crypto president has also brought a Congress that supports digital assets. Candidates in favor of crypto have secured many seats this time. In the House, 266 pro-crypto representatives were elected, greatly outnumbering the 120 who oppose it.

A pro-crypto environment in the US, ambitious plans for strategic Bitcoin reserves, and a 25 basis point rate cut have created an ideal setup for Bitcoin and the broader crypto market. The true impact will be clear once Trump takes office. Whether he delivers on or falls short of his promises will determine the outcome. Until then, the market appears poised for growth.

Trump’s Pro-Adoption Moves Signal Major US Market Growth

Before the election, Trump revealed plans for a crypto project aimed at establishing decentralized lending services.

“Over the next four years of his term, dismissing these as minor details would be shortsighted,” said Markus Thielen, founder at 10X Research. “With nearly $3 trillion in liquid assets, the crypto industry represents a lucrative opportunity for the US economy—something Trump clearly recognizes.”

Thielen pointed out that several key events could boost crypto adoption. These include the $16.5b distribution to FTX creditors, appointing an SEC Chair supportive of crypto and efforts to repeal the restrictive SAB 121 rule.

Additionally, the introduction of new crypto accounting standards by FASB, the passage of the 2024 Bitcoin Act and Congress’s growing pro-crypto stance could all play significant roles, he noted.

Bitcoin Act Proposes US Government Stockpile as Strategic Reserve Asset

The Bitcoin Act would position Bitcoin as a strategic reserve asset, similar to gold. As a result, the US government would aim to acquire up to 5% of Bitcoin’s total supply and include it in national reserves.

The policy states that the US government will retain its current and future Bitcoin holdings. It will create a “strategic national Bitcoin stockpile,” ensuring all acquired or existing Bitcoin stays in government reserves.