London: On Tuesday, Bitcoin surged to nearly $90,000, riding a wave of excitement following Donald Trump’s election as US president and expectations that his administration would be pro-crypto.
The biggest cryptocurrency in the world, which has gained over 30% since November 5, reached $89,982, making it one of the most noticeable movements in the week following the election. At $86,730, it was down 1.4% last time.
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Investors believe Trump’s friends and interests will prosper while he is in power. Bitcoin is rising along with Elon Musk’s Tesla automobile, which has increased by about 40% since the results of the election were announced.
Alvin Tan, the head of Asia FX strategy at RBC Capital Markets, said, “The crypto enthusiasts think they have a like-minded incoming president.”
“The thing about bitcoin at the end of the day is that there is no valuation anchor to it, it’s hard to get a grip on fair value. So, when sentiment is very positive, it does get carried away a lot more than other asset classes.”
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Trump embraced digital assets during his campaign, vowing to build a national bitcoin stockpile and turn the US into the “crypto capital of the planet.”