Broader crypto prices also surged, with meme token Dogecoin rallying to a three-year high.
Improved appetite for crypto sparked a sharp increase in capital inflows into crypto investment vehicles over the past week, factoring into Bitcoin’s strong gains.
The world’s largest cryptocurrency hit a record high of $81,792.4, and traded around $81,193.4 by 00:18 ET (05:18 GMT).
Gains in Bitcoin and other cryptos were driven chiefly by bets that Trump will enact more crypto-friendly policies in the next four years.
Trump had campaigned on a pro-crypto platform, and had even vowed to make America the crypto capital of the world.
This notion was the biggest driver of recent crypto gains, as traders bet that the Securities and Exchange Commission will have to soften its stance against the industry. Markets also bet that the industry will gain more legitimacy as an investment vehicle.
Optimism over a Trump presidency saw crypto exchange-traded funds clock steep gains in the past few sessions.
Bitcoin ETFs saw a record $1.38 billion inflows last Thursday, Coindesk reported, with Blockrock’s iShares Bitcoin Trust (NASDAQ:IBIT) commanding a bulk of these inflows. The IBIT also surpassed Blackrock’s gold ETF in total assets, reaching $34.1 billion, compared to the $33 billion of gold.
Increased institutional interest in crypto, after the launch of spot Bitcoin ETFs in U.S. markets earlier this year, has been a major driver of recent gains in crypto markets.
Bitcoin’s recent gains saw it trading up about 91% so far in 2024.
Broader crypto markets somewhat cooled after a recent rally, with most major altcoins logging a mixed performance on Monday (NASDAQ:MNDY).
Dogecoin was an exception, surging 24% to a three-year peak of $0.280991. DOGE was boosted chiefly by increased speculation over Elon Musk, who has been a proponent of the token, potentially clinching a position in the Trump administration.
Other altcoins retreated. World no.2 crypto Ether fell 1% to $3,152.49, although it remained close to a three-month high.
XRP, SOL, ADA and MATIC moved less than 1% in either direction.
Source: Cryptocurrency - investing.com
