Bitcoin Surges to Record High, Bets on Flourishing Market in Favorable Regulatory Environment

The world's biggest cryptocurrency has now more than doubled from the year's low of $38,505. As of 6:41 GMT, Bitcoin gained 1.02 percent to $81,216.08 after reaching a record high of $81,899 earlier.

Bitcoin hit a record high on Monday, rising above the $81,000 mark amid optimism over a favorable regulatory environment following the U.S. election results and bets on continued institutional interest in the cryptocurrency.

The world’s largest cryptocurrency has now more than doubled from the year’s low of $38,500. As of 6:41 GMT, Bitcoin added 1.02% to $81,216.08 after hitting a record high of $81,899 earlier.

Bitcoin price now in ‘price discovery’ mode: eToro analyst

The asset is now in price discovery, and the momentum from this could continue to push the price higher, meaning Bitcoin could potentially reach six figures within a few months, said Josh Gilbert, market analyst at eToro.

However, analysts noted that while Donald Trump’s immediate priorities will be elsewhere, crypto investors are hoping for an end to the scrutiny faced by the cryptocurrency industry under U.S. Securities and Exchange Commission Chair Gary Gensler, who Trump has said he will fire.

The crypto industry spent over $119 million backing pro-crypto congressional candidates. Among those who were voted out was Senate Banking Committee Chair Sherrod Brown, a Republican who has been one of the crypto industry’s biggest opponents in Congress.

Pro-crypto candidates from both the Democratic and Republican parties also won in Michigan, West Virgina, Indiana, Alabama, and North Carolina, among others.

Bitcoin institutional demand rises as rates set to fall

Institutions’ appetite for Bitcoin is also growing at a time when interest rates are set to fall sharply and risk assets are gaining more traction. Monthly inflows to Bitcoin ETFs are picking up significantly, with over $5 billion in net flow in October.

This record high could also be the driver that brings retail interest back to the ‘euphoria’ levels we’ve seen in previous cycles, that the asset class hasn’t quite experienced this year, said Gilbert.

Broad gains in cryptocurrencies

Gains in cryptocurrencies were broad on Monday. Besides the Bitcoin surge, Ether rose above $3,200 for the first time in over three months and was last at $3,139.16. Dogecoin hit a three-year high and was last at $0.28.

Trump’s possible expansionary fiscal policies could strengthen the dollar, benefiting U.S. imports but adding pressure to emerging market currencies that rely on dollar stability.

His protectionist measures may drive short-term appreciation of the dollar but could create volatility if trade restrictions strain global financial flows, said Amro Zakaria, a financial services industry strategist.