Bitcoin Reaches Record $80K Following Trump Victory

Bitcoin’s price reached an all-time high of $80,000 following Donald Trump’s presidential victory.

As the Financial Times (FT) reported Sunday (Nov. 10), the digital currency reached that record as Trump — seen as ushering in an era of pro-cryptocurrency government — clinched victories in the swing states of Arizona and Nevada.

The price of bitcoin climbed as much as 4.5% Sunday, the report said, citing data from LSEG, helping drive up other cryptocurrencies like ethereum and solana.

“Bitcoin, among the riskiest of risky assets, is having its moment in the sun,” said Eswar Prasad, economics professor at Cornell University. “The regulatory clouds are lifting. Financial conditions are becoming looser, and U.S. macroeconomic prospects continue looking bright.”

As the report noted, the crypto sector views Trump’s victory as a win for them, expecting the new administration to be far less hostile to the digital asset sector.

“We would look for several positives for the asset class early in the administration: regulatory changes … and changes at the Securities and Exchange Commission (SEC) that would lead to a softer regulatory stance on digital assets,” Geoff Kendrick, the head of digital assets research at Standard Chartered, said on Friday.

The $80,000 record follows bitcoin’s previous high of $75,000, reached last week in the immediate aftermath of Trump’s victory.

As has been covered here, the need for clear regulatory frameworks remains one of the most pressing issues facing the crypto world, and a Trump administration would likely see substantial shake-ups in the leadership of regulators such as the SEC.

“Such a shift could lead to relaxed standards around securities classifications and tokenized assets, enabling crypto businesses to operate with greater flexibility,” PYMNTS wrote recently.

Vice President-elect JD Vance was among the 60 senators who voted in May to overturn the SEC’s Staff Accounting Bulletin 121 (SAB 121), which governs how banks should handle customers’ crypto assets, requiring them to treat these assets as liabilities. President Biden ultimately vetoed the Senate’s move.

Still, there are some risks to de-regulation, especially if the boundaries around securities laws are stretched too far. This approach could bring about increased volatility in the market, putting unsophisticated investors in danger if they invest in unvetted or underregulated digital assets.

“Crypto markets are inherently volatile, and the possibility of reduced oversight could amplify this characteristic,” PYMNTS wrote. “Deregulation may lead to significant speculative activity, potentially making the crypto market more susceptible to bubbles and crashes.”