The cryptocurrency market rallies on hopes of pro-crypto regulatory shifts under Trump’s new administration, marking a historic high for Bitcoin.

Bitcoin has surged to a record high of $80,000 following former President Donald Trump’s decisive wins in the US presidential election, including crucial victories in swing states like Nevada and Arizona. This landmark price, reached over the weekend, signals renewed optimism in the cryptocurrency market, with many crypto executives and investors anticipating a more favourable regulatory environment under Trump’s leadership.

The cryptocurrency gained as much as 4.5% on Sunday, extending its rally that began after Trump’s election win earlier in the week. The bullish trend wasn’t limited to Bitcoin alone—Ethereum, the second-largest cryptocurrency, surged by 8.9% to reach $3,200 per coin, while Solana saw a 4.5% uptick, signalling a broader market rally.

Analysts and financial institutions are now forecasting policy changes that could benefit digital assets. According to Standard Chartered, a potential Republican control of the House of Representatives would enable the Trump administration to push through crypto-friendly regulations. This includes adjustments at the Securities and Exchange Commission (SEC) that could relax stringent oversight on digital assets.

Geoff Kendrick, Standard Chartered’s head of digital assets research, expressed optimism, stating, “We anticipate several positives for the crypto sector early in the Trump administration, particularly in terms of regulatory clarity and reforms.” The market’s reaction underscores expectations of a shift from the perceived hostile stance of the previous Democratic administration towards a more open and supportive framework for digital currencies.

Trump’s election campaign had prominently featured Bitcoin, with the former president repeatedly highlighting its potential as an alternative investment. This stance marked a stark contrast to his earlier criticisms, where he had labelled Bitcoin a “scam” that threatened the dominance of the US dollar. Analysts believe his administration’s pro-crypto outlook could pave the way for greater institutional adoption and potentially loosen financial regulations that have so far hampered the sector’s growth.

Leaders within the crypto industry have been quick to celebrate the election outcome. Richard Teng, CEO of Binance, hailed Trump’s win as the dawn of a “golden era” for cryptocurrencies, despite recent regulatory challenges that saw Binance facing significant fines. Brian Armstrong, CEO of Coinbase, echoed these sentiments, suggesting that the Trump administration would promote “economic freedom” and revitalise interest in the sector.

Alex Thorn, head of research at Galaxy Digital, noted that Trump’s support base includes influential figures who are strong proponents of digital assets. “Trump’s inner circle is extremely supportive of digital currencies,” he said, indicating that this could translate into concrete actions to support the sector.

Despite the widespread enthusiasm, some experts caution against overestimating the impact of Trump’s election on the cryptocurrency market. David Yermack, a finance professor at New York University, warned that Trump’s campaign promises might not fully materialise, especially given his inconsistent understanding of digital currencies. “Trump has made ambitious pledges, but his actual grasp on the intricacies of digital assets remains limited,” Yermack observed.

Nevertheless, the broader crypto community remains optimistic that Trump’s administration will adopt a more hands-off regulatory approach, encouraging innovation and easing the legal pressures that have weighed on the sector over the past four years.

As the election results continue to unfold, with Republicans potentially securing control of Congress, investors are hopeful that this political shift will translate into a more favourable regulatory landscape for digital currencies. However, questions remain over how quickly Trump’s team can implement these changes and whether they will truly deliver on the promises made during the campaign trail.

For now, Bitcoin’s historic surge reflects a renewed sense of optimism in the crypto space, with traders and investors eagerly watching for signs of tangible policy shifts in the coming months