Bitcoin soared to an all-time high above $87,000 on Monday on expectations that cryptocurrencies will boom in a less strict regulatory environment following the election of Donald Trump as US president and like-minded candidates for Congress.
The world’s largest and best-known cryptocurrency has more than doubled from its yearly low of $38,505 and was trading at $87,079, almost 9% above its late Sunday price, after hitting an all-time high of $87,460. .
U.S.-listed cryptocurrency stocks also rose, with crypto exchange Coinbase Global soaring 22% and iShares Bitcoin Trust soaring 13%.
Cryptocurrency miner Riot Platforms rose 19%, while MicroStrategy, one of bitcoin’s largest corporate backers, gained nearly 24%.
Trump embraced digital assets during his campaign, promising to turn the United States into the “crypto capital of the planet” and amass a national reserve of bitcoins.
“The outcome of the 2024 US election is a moment of rebirth for the crypto industry,” wrote Jeff Dorman, chief investment officer and co-founder of asset manager Arca, in a research note.
“Events in crypto with this level of importance are rare. “When they happen, they immediately broaden the world’s collective perspective on the potential of the crypto movement and where this technology will take the world in the future,” he added.
Short sellers of cryptocurrencies and blockchain-related securities have suffered heavy losses since November 6, after bitcoin hit all-time highs.
Combined losses from short selling at Coinbase, cryptocurrency miners Riot Platforms and MARA Holdings, as well as blockchain farm operator Bitfarms were around $1.2 billion, as of the close on November 8.
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.
Read: Bitcoin rises and causes billions in losses to those who bet short after Trump’s victory
The cryptocurrency industry spent more than $119 million supporting pro-crypto congressional candidates, many of whom won their elections.
Cryptocurrency gains have been broad.
Ether topped out at a more than three-month high above $3,350 and was then trading at $3,318. Dogecoin, an alternative cryptocurrency that began as a satirical critique of the 2013 cryptocurrency frenzy, was at a three-year high.
With information from Reuters
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