The price of Bitcoin rallied to nearly US$90,000 on November 12, topping out at US$89,645.
The popular cryptocurrency has been rising on the heels of last week’s US presidential election, which saw Donald Trump and the Republican Party declare victory after securing all seven swing states and regaining a Senate majority.
Bitcoin surged as ballots were counted, blowing past its previous all-time high of US$73,000 as Trump took an early lead.
The election was called for Trump at around 5:36 a.m. EST on November 6. Bitcoin was valued at US$73,806 when the news hit, reflecting a nearly 7 percent increase in 24 hours. It went on to break the US$75,000 barrier that same day, and has held steady above that level, unlike in September and October, when volatile price swings kept investors guessing.
Bitcoin performance, November 11 to 12, 2024.
Chart via CoinGecko.
Continuing higher, Bitcoin passed US$80,000 on November 10 and then hit US$85,000 midday on November 11. From there it pushed further — as mentioned, it ultimately peaked near US$90,000 November 12.
Bitcoin saw a sharp 8.36 percent increase on November 11 as Republicans gained ground in the battle for control of the House. At 7:35 p.m. EST that day, Decision DeskHQ announced that the party had secured 219 seats.
A Republican-controlled White House is expected to lead to looser financial regulations, and the appointment of crypto-friendly policymakers like Young Kim (R-C) could result in crypto-related legislation passing early in 2025.
Two prime examples are the Financial Innovation and Technology for the 21st Century Act, otherwise known as FIT21, and the Bitcoin Act of 2024. FIT21 would define digital assets under one of two categories — either restricted digital assets or digital commodities — and would assign jurisdiction to either the US Securities and Exchange Commission, which would oversee the trade of restricted digital assets, or the Commodity Futures Trading Commission, which would handle digital commodities trading. The act has already passed through both chambers of Congress, but has been met with opposition from the Biden administration, which has prevented it from being signed into law.
FIT21 has been stalled since September 9, and while it could pass before the end of the term in Congress’ final session this week, Representative William Barr told CoinDesk in October that leaving it for the next Congress session would give lawmakers an opportunity to revisit the bill and possibly make revisions.
The Bitcoin Act would see a strategic Bitcoin reserve established by the federal government, a move Trump has said he would support if elected. The bill was introduced by Senator Cynthia Lummis (R-WY) in July, and was read twice before being referred to the Senate Committee on Banking, Housing and Urban Affairs.
Bitcoin’s recent surge, fueled by political developments, underscores the growing influence of regulatory decisions on the cryptocurrency market. While its future trajectory is uncertain, Bitcoin’s momentum suggests investors are hopeful that a shift toward a more favorable environment for Bitcoin and other cryptocurrencies in the US under a Republican administration will lead to continued adoption and crypto and innovation in the industry.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.