Bitcoin (BTC-USD) surged to an all-time high of over $81,800 (£63,416) on Monday, spurred by Donald Trump’s recent presidential victory and the election of pro-crypto candidates to Congress, stoking expectations of a friendlier regulatory stance toward digital assets in the US.
The world’s largest cryptocurrency has now risen over 80% this year, marking a significant recovery after hitting a low of $38,505 in January.
Bitcoin was trading 4.3% higher at $81,480 at the time of writing, slightly off its session peak of $81,858.
The cryptocurrency industry had invested upwards of $119m to support pro-crypto congressional candidates, aiming to lay the groundwork for crypto-friendly legislation. Many of these candidates were successful in their bids, creating a path for a Congress that may be more supportive of digital assets.
“Bitcoin surged to an all-time high of over $81,800 following the recent US elections, driven by Trump’s victory and the election of pro-crypto candidates to Congress,” said Shivam Thakral, CEO of BuyUcoin.
“This political shift has raised hopes for a more favourable regulatory environment, with fewer limitations on cryptocurrency markets. It’s expected that this will stimulate innovation and adoption within the industry, boosting long-term growth and stability in the cryptocurrency space.”
Open interest in bitcoin’s price surpassing $90,000 has climbed to more than $2.8bn on Deribit, one of the largest crypto-native derivatives platforms. Deribit captures the bulk of the offshore options market, where investors can place call options, betting on further price increases, or put options, betting on declines.
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“The BTC fear-greed index signals ‘Extreme Greed,’ indicating strong momentum,” said Edul Patel, CEO of Mudrex. “Long positions in futures have risen to $2.8bn on BTC at $90,000, showing market confidence in the ongoing bull run.”
Bullish projections have suggested the digital asset could be headed for a target of $100,000 before the end of the year.
“Traders are very much hoping that the bitcoin price will reach its goal of 100,000 this week,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.
Ether (ETH-USD), too, rallied on the heels of bitcoin’s ascent, reaching $3,200 amid a broader positive sentiment in digital assets.
“Ethereum has also rallied, climbing to $3,200 amid positive sentiment following bitcoin’s latest peak. This upward momentum may fuel price action across broader markets. Bitcoin’s resistance stands at $82,500, with strong support at $75,600,” Patel added.
