Bitcoin nears $90,000 as investors eye crypto-friendly Trump administration

Bitcoin is closing in on $90,000 as crypto enthusiasts bet on United States President-elect Donald Trump taking a hands-off approach to digital currencies, Al Jazeera reports.

The world’s most popular cryptocurrency hit a record high of $89,637 on Tuesday, continuing its explosive rally since the US presidential election on November 5.

The commodity has gained more than 30 per cent since election day, with investors anticipating Washington to take a turn towards more crypto-friendly policies under Trump.

During his first term as president, Trump called Bitcoin a “scam” and complained that the currency was “competing against the dollar”.

The Republican, however, radically changed course during his re-election campaign to cast himself as a crypto champion.

Among other promises, Trump has pledged to turn the US into “the crypto capital of the planet” and to replace the chair of the Securities and Exchange Commission, Gary Gensler, who led efforts by President Joe Biden’s administration to increase oversight of the sector.

In September, Trump announced the launch of his own crypto venture, World Liberty Financial, along with his family members.

“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.”

Despite their enthusiastic following, Bitcoin and other cryptocurrencies are widely viewed as speculative assets and are known for experiencing wild swings in value.

After climbing to a record high of $69,000 in late 2021, Bitcoin plunged to less than $16,000 over the following year.

The commodity climbed back to its previous peak in March after rising more than 300 percent since November 2022.