Ammon News - Bitcoin is nearing $80,000 for the first time, supported by President-elect Donald Trump’s support of digital currencies and the likelihood of a Congress with crypto-friendly representatives.

The cryptocurrency jumped 4.3% to a peak of $79,771 on Sunday and remained around $79,000 at 2:05 p.m. in Singapore. According to a Bloomberg report, lesser-known coins like Dogecoin, a meme favorite, and Cardano also experienced gains.

Inquiries are circulating regarding whether Bitcoin's increases are merely the beginning of a larger surge. Specialists and analysts indicate that the currency might reach $100,000 prior to the conclusion of 2024.

Trump ran on a promise to place the United States at the forefront of the digital asset sector, which included establishing a strategic bitcoin reserve and selecting regulators supportive of cryptocurrency. He came out of Tuesday’s election in a better position than anticipated — his Republican Party holds the Senate and is likely to keep a narrow majority in the House of Representatives.

“As the aftermath of Trump's win unfolds, it was merely a question of time until a rally occurred due to the belief that Trump supports cryptocurrency, and that’s what we are witnessing now,” stated Li Shi, managing director of the Hong Kong-based market maker Aurus.

Bitcoin has increased by roughly 90% in 2024, driven by robust demand for exchange-traded funds in U.S. markets and interest rate reductions by the Federal Reserve. The surge in the biggest digital currency, which has reached new highs following the U.S. election, is surpassing the returns of other investments like stocks and gold.

According to Bloomberg data, the exchange-traded funds supported by BlackRock Inc.'s $35 billion iShares Bitcoin Trust recorded a historic daily net inflow of almost $1.4 billion on Thursday. The day before, the iShares ETF experienced a trading volume surge to a record peak — clear indications of how Trump’s win is transforming cryptocurrency.

Trump's position differs from the stringent measures on digital assets initiated by President Joe Biden. SEC Chairman Gary Gensler has consistently characterized the industry as fraught with deceit and unethical practices. The agency has intensified its scrutiny of cryptocurrencies following the 2022 market decline and several failures, especially the collapse of Sam Bankman-Fried’s FTX exchange.

Digital asset firms and their leaders have invested significantly during the U.S. election campaign to support candidates perceived as beneficial to their goals.

“Noelle Acheson, author of the Crypto Is Macro Now newsletter, stated that Trump has vowed to implement favorable regulations, and significant victories in the House and Senate increase the chances of passing cryptocurrency legislation.”