Bitcoin reached a historic high on Monday, surpassing $82,000, driven by investor expectations that a Trump-led administration and pro-crypto congressional candidates will create a favorable regulatory environment for digital assets.

Bitcoin, the world’s most prominent cryptocurrency, surged to an intraday record of $82,527 before settling around $82,236.

The value of Bitcoin has more than doubled from this year’s low of $38,505.

JUST IN: $82,000 #BITCOIN NEW ATH 🚀 pic.twitter.com/o56YjFrT0i

— Bitcoin Magazine (@BitcoinMagazine) November 11, 2024

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The rise follows President-elect Donald Trump’s strong pro-crypto stance during his campaign, where he vowed to make the United States the “crypto capital of the planet” and proposed establishing a national bitcoin reserve.

Trump’s campaign promises to encourage cryptocurrency innovation have spurred optimism within the digital asset industry, especially as Republicans inch closer to securing a majority in both chambers of Congress.

“Bitcoin’s Trump-pump is alive and well,” stated Matt Simpson, senior market analyst at City Index, adding that the crypto community anticipates deregulatory moves if Republicans take control.

Simpson, however, cautioned that while the market response has been strong, Trump’s immediate policy priorities may initially focus on broader national security and economic issues.

Crypto investors view the potential end of increased scrutiny from U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler—whom Trump has pledged to replace—as a positive development.

The SEC under Gensler’s leadership has taken a more stringent approach to digital assets, increasing compliance demands on the crypto industry.

With this policy shift on the horizon, pro-crypto advocacy has gained momentum in Washington, where industry groups reportedly spent over $119 million supporting candidates with favorable views on digital assets in the midterm elections.

Several pro-crypto candidates succeeded in their congressional bids. In Ohio, one of the sector’s most prominent critics, Senate Banking Committee Chair Sherrod Brown, was defeated.

Pro-crypto lawmakers from both parties also secured seats in Michigan, West Virginia, Indiana, Alabama, and North Carolina, signaling broad bipartisan support for more lenient cryptocurrency regulations.

In addition to his policy initiatives, Trump’s personal investments in cryptocurrency have attracted investor attention.

In September, he launched World Liberty Financial, a new crypto-focused business, although details remain limited.

Billionaire Elon Musk, a well-known Trump supporter and vocal cryptocurrency advocate, has further amplified confidence in Trump’s crypto-friendly approach.

Eric Trump, President-elect Trump’s son and an executive vice president at the Trump Organization, is scheduled to speak at an upcoming bitcoin conference in Abu Dhabi, underscoring the incoming administration’s commitment to the digital currency space.

Market analysts believe that the Trump administration’s pro-crypto stance could catalyze broader adoption of digital assets.

Marion Laboure, research analyst at Deutsche Bank, noted that the administration’s “pragmatic approach” is expected to encourage regulatory clarity, boost institutional participation, and improve cryptocurrency market infrastructure.

Bitcoin exchange-traded funds (ETFs) also experienced unprecedented inflows following Trump’s election win.

Citigroup reported that on November 7, bitcoin ETFs saw record net inflows of $1.38 billion, signaling strong interest from institutional investors.

According to Citi analysts, “ETF inflows have been the dominant driver of Bitcoin returns, and we expect this to continue in the near term.”

Other cryptocurrencies mirrored Bitcoin’s rally. Ether, the second-largest cryptocurrency, rose to $3,200 for the first time in over three months, while Dogecoin, originally created as a satirical take on cryptocurrency speculation, hit a three-year high.

Cryptocurrency-linked stocks also surged in premarket trading.

Coinbase Global, a major cryptocurrency exchange, gained more than 16%, iShares Bitcoin Trust rose by 7.3%, crypto miner Riot Platforms surged over 10%, and MicroStrategy, a major corporate holder of bitcoin, jumped 11.3%.

Laboure also anticipates that potential rate cuts from the Federal Reserve could contribute to a more favorable environment for cryptocurrencies, providing additional support to the digital asset market in the coming months.