By Tom Westbrook
SINGAPORE (Reuters) – Bitcoin topped $90,000 on Tuesday, riding a wave of euphoria since the election of Donald Trump as U.S. president on expectations his government will be crypto-friendly.
The world’s largest cryptocurrency has become one of the most notable gainers in the week since the election, reaching $89,637 in Asia – a gain of more than 25% since November 5.
It’s growing alongside Elon Musk’s automaker Tesla, which is up nearly 40% since voting results started pouring in, as investors think Trump’s friends and interests will do well while he’s in power.
“It’s clearly a clear Trump trade given how supportive he is of the industry, and this can only lead to more demand for both crypto stocks and the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney.
“The fact that Bitcoin was trading at near record highs at the time the election results were announced meant there was clear air above.”
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and build a national stockpile of bitcoin.
It’s not clear how or when that could happen, but the possibility set off a speculative wave of crypto mining and stock trading.
“I think it increases the chances of other nation states buying bitcoin in an attempt to outpace the US,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.
“Additionally, I think it would be a crazy catalyst for US-listed Bitcoin miners… given the possibilities of such entities being nationalized.”
Crypto miner Riot Platforms rose nearly 17% overnight on Wall Street and rose further in after-hours trading. Fellow miners MARA Holdings and CleanSpark rose almost 30%.
Software company and bitcoin investor MicroStrategy announced that it had spent approximately $2 billion on bitcoin between October 31 and November 10. Shares rose 26%, still gaining in after-hours trading.
The euphoria extended across the crypto landscape, with smaller tokens like ether and even one-time currency dogecoin booming.
Crypto investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chairman Gary Gensler, whom Trump has said he will replace. Trump also unveiled a new crypto company, World Liberty Financial, in September.
“What we’re seeing isn’t just a price milestone; it is a signal that the market is increasingly turning to the idea of bitcoin as a more stable, even politically favored asset,” said Justin D’Anethan, head of Asia-Pacific. business development at digital asset market maker Keyrock.
(Reporting by Tom Westbrook; Editing by Shri Navaratnam)
