Bitcoin has reached a new milestone, surpassing $80,000 for the first time, driven by optimism following the US presidential election.

The world’s largest cryptocurrency saw significant gains in the lead-up to Tuesday’s election and continued its ascent after Donald Trump’s apparent victory on election night.

Currently, Bitcoin is trading just below the $80,000 mark, reflecting an impressive 80% increase this year, far outpacing the S&P 500’s 25.7% gain.

The crypto industry views Trump’s return to the presidency as a positive signal for digital currencies.

While Trump previously expressed skepticism about Bitcoin, calling it “based on thin air,” he has recently embraced the cryptocurrency sector.

This shift in attitude follows Trump’s establishment of a new crypto venture, World Liberty Financial, with his children in September.

“It’s very young and very growing,” Trump stated during the launch of his crypto business, expressing his belief in the future of cryptocurrency.

In contrast, the Biden administration has taken a more cautious approach to the crypto market.

Securities and Exchange Commission (SEC) Chairman Gary Gensler has described the sector as “ripe with fraud, scams, and abuses,” and the SEC has been proactive in regulating the industry.

Notably, Gensler’s oversight has led to legal actions against several crypto companies, including the high-profile case against FTX’s Sam Bankman-Fried.

Despite regulatory challenges, Gensler approved a Bitcoin exchange-traded fund, allowing investors to gain exposure to cryptocurrencies in retirement accounts.

However, in January 2024, Gensler’s X account was hacked, leading to false announcements that the long-awaited Bitcoin ETF had launched, briefly boosting cryptocurrency prices.

Also, read this

Bitcoin soars to two-week high after Trump attack

In bitcoin’s shadow, another cryptocurrency, Ether, stages its own rally

Bitcoin breaks $50,000 for first time since 2021

Trump has expressed his vision for cryptocurrencies, suggesting they could “define the future” and advocating for a strategic national Bitcoin stockpile, akin to the US strategic petroleum reserve. His proposal includes direct investments in cryptocurrencies as a national security measure.

Adding to the crypto momentum, Elon Musk, who is a prominent supporter of Trump and a well-known cryptocurrency enthusiast, saw his favored cryptocurrency, Dogecoin, rise over 20% on Sunday, continuing its upward trajectory from the previous week.