Bitcoin Price Hits Record High of $90,000 After Donald Trump Victory

On Tuesday, November 5, the price of Bitcoin hit just shy of $70,000. On Monday, November 11, mere days later, that price now sat under $90,000, the highest figure Bitcoin has ever been at.

Bitcoin's price soared to a record high above $90,000 on Monday, November 11, just days after hitting close to $70,000 on Tuesday, November 5.

While Donald Trump's victory in the 2024 United States election may have contributed to the surge, there appears to be a larger narrative at play.

Initially, a surge was sparked by Donald Trump, and other factors pushed that surge to new heights. In October, Donald Trump stated his intention to establish America as the "crypto capital of the planet," accepting crypto donations for his campaign trail.

He spoke favourably at a Bitcoin conference in June this year, a stark contrast to his statement to Newsmax in 2021, when he said that cryptocurrencies' value was "highly volatile and based on thin air," and urged the United States to regulate it heavily. His newfound support for cryptocurrency, combined with Elon Musk's very vocal backing (who is himself a backer of cryptocurrency), suggests that his cabinet will be favourable to it.

However, Jesse Myers, founder of OnrampBitcoin, a company that provides Bitcoin financial services, suggests that this recent growth is linked to post-halving, the act of halving the daily generated amount of Bitcoin. As this number decreases, so does the incentive to mine, essentially enforcing a level of scarcity for the coin.

This is intended to counter broader inflation trends and is part of the coin's design to be used as an actual currency. There are only 21 million total Bitcoins that can be mined, and with nearly 20 million of them already discovered, post-halving prevents the world from reaching the collective number faster.

Speculative trading on this coin in particular contributes to the astronomical figures we typically see the coin fetch, as those hoarding the coin see its value rise and potential entrants to the market are deterred from doing so.

Crucially, this post-halving event occurs every four years, and each time, Bitcoin has experienced a sudden spike a few months after post-halving. While Trump's victory appears to have sparked a surge, that surge has only reached its peak due to the coin's continuous scarcity.

Post-halving also occurred in April 2020, when the coin experienced its sharpest percentage spike since its inception. As a result, regardless of who wins the 2028 presidential election, it is likely to follow suit.