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Bitcoin Approaches $90,000 Amid Post-Election Euphoria

Following the recent U.S. presidential election, Bitcoin has soared to nearly $90,000, a surge of over 25% since Nov. 5, as investors anticipate a pro-crypto stance from President-elect Donald Trump. Amid this wave of optimism, Tesla, the automobile giant owned by Elon Musk, has also seen a significant uptick, with its shares rising nearly 40% since the election results were announced.

“It is a clear Trump trade, considering his support for the industry. It signals an increase in demand for both crypto stocks and the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney. He added that Bitcoin’s strong performance at the time the election results were announced opened up a trajectory of growth.

During his campaign, Trump made a strong commitment to digital assets, vowing to establish the U.S. as the “crypto capital of the planet” and build a national stockpile of Bitcoin. While the logistics and timeline of this proposal remain unclear, it has fueled a speculative surge in crypto mining and trading stocks.

According to Matthew Dibb, chief investment officer at Astronaut Capital, this development could prompt other nations to invest in Bitcoin to stay ahead of the U.S. He further suggested that such a move would significantly boost U.S. Bitcoin miners, especially if, as speculated, they could potentially be nationalized.

In a related development, Crypto miner Riot Platforms saw its shares jump nearly 17% on Wall Street overnight and continue to rise in after-hours trade. Similarly, other mining companies such as MARA Holdings and CleanSpark experienced a nearly 30% leap in their shares.

Meanwhile, MicroStrategy, a software company that invests in Bitcoin, revealed that it had spent around $2 billion buying Bitcoin between Oct. 31 and Nov. 10. Its shares have since risen by 26% and continue to rise in after-hours trading.

This wave of optimism has also spilled over to smaller tokens like ether and even the erstwhile joke currency, dogecoin, both of which have seen a surge in their value.

Crypto investors are also optimistic about a reduction in stringent oversight under U.S. Securities and Exchange Commission Chair Gary Gensler, whom Trump has indicated he will replace. In September, Trump announced a new crypto venture, World Liberty Financial.

“This is not just a milestone in price. It indicates a market that is becoming more receptive to Bitcoin as a more stable and possibly politically favoured asset,” said Justin D’Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock.