Agencies
Bitcoin stood on the verge of yet a new record, nearing the $90,000 mark on Tuesday, riding a wave of euphoria almost a week since the election of Donald Trump as U.S. president and the expectations his administration will be cryptocurrency friendly.
The world’s biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and touched $89,637 in Asia – a gain of more than 25% since Nov. 5.It is surging along with Elon Musk’s automaker Tesla, which is up nearly 40% since voting results rolled in as investors figure Trump’s friends and interests will do well while he is in office.
“Obviously (it’s) a clear Trump trade as he is so supportive of the industry, and this can only mean more demand both for crypto stocks as well as the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney.“The fact that bitcoin was trading near all-time highs when the election result came through meant that it had clean sky above.” Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.
It is not clear how or when that could happen but the possibility drove a speculative surge in crypto mining and trading stocks.“I think it increases the chances that other nation states buy bitcoin in a bid to front run the U.S.,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.
“Additionally I think it would be a crazy catalyst for the U.S. listed Bitcoin miners ... given possibilities of such entities getting nationalized.” Crypto miner Riot Platforms jumped nearly 17% on Wall Street overnight and rose further in after-hours trade.
