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A bitcoin sign at a cryptocurrency exchange office in Istanbul, Turkey, November 8 2024. Picture: GETTY IMAGES/CHRIS MAGRATH
A bitcoin sign at a cryptocurrency exchange office in Istanbul, Turkey, November 8 2024. Picture: GETTY IMAGES/CHRIS MAGRATH

New York — Bitcoin broke through the $90,000 level on Wednesday, as its rally showed no signs of easing on expectations that Donald Trump as US president will be a boon for cryptocurrencies.

The world’s biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and on Wednesday touched record highs. It was last up 5.49% at $93,158, marking a 32% rise since the November 5 election.

Smaller peer ether has also risen 37% since election day, while dogecoin, an alternative, volatile token promoted by billionaire Trump-ally Elon Musk was up more than 150%.

Trump embraced digital assets during his campaign, promising to make the US the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.

It is unclear how or when that could happen but the possibility drove a speculative surge in crypto mining and trading stocks.

“Key areas to monitor include potential regulatory changes, increased institutional participation, and a rise in M&A activity,” said Carl Szantyr, managing partner of digital asset hedge fund Blockstone Capital.

“The new political landscape may bring clearer regulations for crypto assets and could prompt strategic developments, such as a national bitcoin reserve and growth in the mining sector.”

Software company and bitcoin investor MicroStrategy announced it had spent about $2bn buying bitcoin between October 31 and November 10. Shares scaled a record high on Tuesday.

Crypto investors see an end to increased scrutiny from the Securities and Exchange Commission (SEC) under Trump.

Trump, with his sons, also announced a new crypto business, World Liberty Financial, in September.

“President Trump’s re-election would allow him to appoint a new chair of the SEC, an agency that has arguably been stifling the crypto industry via ongoing legal action and monetary penalties over the past [about] three years,” JPMorgan researchers said in a note on Tuesday.

Funds tracking the spot price of bitcoin, including BlackRock’s iShares Bitcoin Trust, were up nearly 4% on Wednesday.

Shares in Coinbase, the largest publicly traded crypto exchange, were down 1.3%, while shares in bitcoin miners Riot Platforms and Marathon Digital Holdings were down 4.08% and 4.68%, respectively.

Reuters

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