Bitcoin Closes to $90,000 as Donald Trump’s Pro-Crypto Stance Fuels Market Growth – Digital Transformation News

Bitcoin surged to nearly $90,000 on Tuesday, fueled by expectations that President-elect Donald Trump will promote a cryptocurrency-friendly environment. The world’s largest cryptocurrency reached an impressive high of $89,982, marking a 30% increase since November 5. It later fell to $86,730, down 1.4%.

The increase comes alongside a remarkable rally by Tesla, up nearly 40% from choice the results were announced. Investors believe that trump cardHis presidency could benefit sectors linked to his network of allies and vested interests, including cryptocurrencies and tech giants.

“Crypto-enthusiasts believe they have a future president who is like-minded,” said Alvin Tan, head of Asia FX Strategy at RBC Capital Markets. He noted, however, that bitcoinIts valuation is notoriously volatile, lacking a traditional ‘valuation anchor’, meaning sentiment-driven spikes can be extreme.

Trump’s campaign promises included positioning the US as the “crypto capital of the planet” and amassing a national bitcoin reserve, sparking excitement among traders and mining firms. While the timing and feasibility remain uncertain, this pledge has fueled speculation, driving up cryptocurrency-related stocks and market activity.

Cryptominer Riot Platforms surged nearly 17% on Wall Street on Monday. Fellow miners MARA Holdings and CleanSpark rose nearly 30%.

Software company and bitcoin investor MicroStrategy announced that it spent about $2 billion buying bitcoin between October 31st and November 10th. Shares rose 26% on Monday.

“Obviously (it’s) a clear deal with Trump because he’s advocating so much industryand this can only mean more demand for both crypto stocks and the coins themselves,” Nick Twidale, chief market analyst at ATFX Global in Sydney, said of the bitcoin rally.

“The fact that bitcoin was trading near all-time highs when the election result came in meant it was clear sky above.”

Euphoria extended across the crypto landscape, with smaller tokens such as ether and dogecoin falling early Tuesday in Europe.

(With contributions from Reuters)