Bitcoin touched a record high of $81,899 (£63,493) this morning (Monday 11 November), before dropping back to about $81,100, a gain of about 2.7%. The price has more than doubled from about $37,000 12 months ago.
Prices have also risen for other cryptocurrencies such as Ethereum and Dogecoin.
The surge in cryptocurrency prices comes as the Republicans are edging closer to overall control of Congress, having already secured the presidency and a majority in the Senate.
Although in the past Trump referred to Bitcoin as a “scam against the dollar”, he changed his tune on cryptocurrency during the US presidential election campaign and pledged to make the US “the crypto capital of the planet”.
His change in stance has created an expectation of a relaxation of rules to make it easier for retail savers to invest in Bitcoin and other cryptocurrencies. However, Trump has not yet specified any policies in this area.
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Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The euphoria unleashed by Trump’s win has pushed Bitcoin to fresh record highs. His pledge to go all in on crypto has sent Bitcoin to fresh heady heights, hitting another high of $81,899 before retreating a little.
“He’s made an about turn on supporting the industry and is now vowing to turn the US into the crypto capital of the world. Bitcoin speculators are betting on a more clement regulatory environment, and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand.”
Russ Mould, investment director at AJ Bell, said: “Bitcoin always seemed a likely beneficiary of a Trump victory and so it is proving as the cryptocurrency hits a new record high.
“It’s not just the incoming occupant of the White House which has helped Bitcoin, there have also been down-ticket victories for candidates who have a positive stance on the asset class. Notably, one of its main critics, Senate banking chair and Democrat Sherrod Brown, fell to his Republican opponent and a crypto fan Bernie Moreno.