Bitcoin surged to a new record above $80,000 on Sunday, marking a significant milestone for the world’s largest cryptocurrency.
The surge came ahead of Tuesday’s U.S. presidential election, spiked sharply on election night after it became clear that Donald Trump would win, and has continued climbing in the days following his victory.
Bitcoin has risen 80% this year, far outpacing the S&P 500’s impressive 25.7% gain.
After briefly touching the $80,000 mark, it was trading just below that level by mid-morning Sunday.
The crypto industry views Trump’s victory as a positive sign for Bitcoin and other digital currencies.
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Although Trump was once a skeptic of Bitcoin, dismissing it as “based on thin air,” he has fully embraced the cryptocurrency in recent months—unlike the Biden administration, which has sought to regulate and restrain the sector.
A key reason for Trump’s change in stance on crypto is his financial interest in the industry.
In September, Trump and his children launched a new crypto venture called World Liberty Financial. “It’s very young and very growing,” Trump said at the launch. “I do believe in it.”
In contrast, the Biden administration has been more skeptical of cryptocurrency.
In June 2021, SEC Chairman Gary Gensler described the crypto market as “ripe with fraud, scams, and abuses” and has since taken a strong stance on regulating the industry.
Under Gensler, the SEC has sued crypto companies and worked to address what it believes to be illegal trading of securities within the crypto market.
The SEC has also teamed up with other regulators, including the Department of Justice, to crack down on crypto fraud, with notable cases such as the prosecution of FTX CEO Sam Bankman-Fried.
Although Gensler initially slowed the approval of a Bitcoin exchange-traded fund (ETF), he eventually greenlit the product, allowing investors to gain exposure to cryptocurrencies through retirement accounts.
In January 2024, however, Gensler’s X account was hacked, leading to a false post that the long-awaited Bitcoin ETF had launched, causing a brief surge in cryptocurrency prices.
Trump has long been a vocal advocate for American involvement in cryptocurrency, stating in August that he believes digital currencies could “define the future.”
He also proposed creating a strategic national Bitcoin reserve, similar to the U.S. strategic petroleum reserve, to help safeguard national security.
Elon Musk, one of Trump’s most prominent supporters and a well-known crypto enthusiast, has also played a role in the market’s recent surge.
Musk’s favorite cryptocurrency, Dogecoin, soared more than 20% on Sunday and had been gaining steadily throughout the previous week.
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