Bitcoin has broken its previous all-time high after Donald Trump's victory in the U.S. presidential election. The value of cryptocurrency holdings has risen substantially because of his promises to overhaul American crypto policy. Trump's commitment to create a more crypto-friendly regulatory environment could mark a key milestone for digital asset adoption.

The cryptocurrency landscape will likely see major changes as Trump plans to establish a U.S. Bitcoin Strategic Reserve and eliminate regulatory hurdles for crypto companies. His campaign pledges include a pardon for Ross Ulbricht, a replacement for SEC Chair Gary Gensler, and support for bipartisan efforts that protect self-custody rights. These changes could reshape the future of Bitcoin and the broader cryptocurrency market, affecting both retail and institutional investors.

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Election Results and Market Reaction

In a dramatic political comeback, Donald Trump has won the presidency with over 71 million votes, surpassing the 270 Electoral College votes needed to secure a second term, according to projections from Edison Research. Trump's victory was solidified with a crucial win in Wisconsin, bringing his total to 279 electoral votes against Kamala Harris's 223, with some states still pending final counts. 

Republicans also gained a stronghold in Congress, securing 52 seats in the Senate, and are on track to win the House, holding 204 seats to the Democrats’ 182 at the time of writing. The markets responded positively, with major stock indices rallying and the dollar experiencing its largest single-day surge since 2020.

Trump addressed supporters at the Palm Beach County Convention Center, celebrating a “powerful mandate” from the American people. His second term promises to be a pivotal moment in U.S. politics, potentially reshaping domestic policies on immigration, trade, and law enforcement, and further deepening the polarization of American society.

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Bitcoin's price surge

Bitcoin holders witnessed a historic milestone as the leading cryptocurrency reached $75,011.06. Market enthusiasm soared after Trump's victory and Bitcoin held strong at $74,700, showing a 9.25% jump within 24 hours. The entire cryptocurrency market demonstrated remarkable performance:

• Market value reached $2.50 trillion
• Trading activity jumped 77% to $138.48 billion
• Bitcoin Market capitalization climbed to $1.48 trillion

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Investor sentiment

You're seeing a clear correlation between Trump's electoral success and market confidence. Crypto investors have been anticipating this moment for months, convinced that a Trump victory would boost digital assets. The surge isn't limited to Bitcoin – other cryptocurrencies have shown remarkable gains:

• Dogecoin shot up nearly 30%
• Uniswap climbed 23%
• Solana, Cardano, and Shiba Inu increased 10-15% each

Market analysts point out how this rally lines up with past trends. Bitcoin showed remarkable post-election growth in previous cycles. The returns reached 87%, 44%, and 145% within 90 days after the 2012, 2016, and 2020 elections.

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Trump's Crypto Agenda: 6 Key Points for the Future of Bitcoin and Digital Assets

The next president's crypto agenda features groundbreaking initiatives that will alter the digital asset map. Trump presented an ambitious vision for cryptocurrency regulation and adoption in the United States during the Bitcoin 2024 Conference in Nashville:

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1. Establishing the U.S. Bitcoin Strategic Reserve 

Trump has proposed creating a national Bitcoin reserve to position the U.S. as a leading nation-state holder of Bitcoin. This plan would involve preserving the approximately 203,239 BTC the U.S. government currently holds, including the 94,000 BTC intended for Bitfinex hack creditors, with potential for additional acquisitions to build up the reserve.

Following this announcement, Senator Cynthia Lummis introduced the Bitcoin Reserve Bill, aiming to establish a National Bitcoin Reserve by accumulating 1 million BTC over five years, with a mandated 20-year holding period. The primary objective of this reserve is to aid in reducing the national debt:

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2. Easing Regulations for Crypto Companies 

To attract more crypto businesses to the U.S., Trump has pledged to reduce regulatory burdens by forming a “crypto presidential advisory council” composed of industry-friendly members. This council would work on clear, pro-crypto regulatory guidelines, aiming for publication within the first 100 days. 

Key regulatory changes include:

• Opposing a Federal Reserve digital currency (CBDC) 
• Transforming the U.S. into a global crypto hub
• Maintaining protections for self-custody rights, allowing individuals to securely hold their assets.

*Potentially the easing of regulatory burdens would also prioritize Innovation and Individual Liberty: 

The Samourai Wallet case shows the danger of overregulation. This privacy-focused wallet was designed to protect user privacy. However, its developers are facing legal charges for creating a tool that empowers individuals. This stifles innovation. We need to prioritize individual liberty and minimize unnecessary regulation to foster a thriving crypto ecosystem.

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3. Firing Gary Gensler and Ending 'Operation Chokepoint 2.0 

Trump’s administration would start with a focus on reforms at the regulatory level, specifically by removing SEC Chair Gary Gensler. Candidates under consideration include crypto advocates like Hester Peirce and legal experts who oppose the current “regulation-by-enforcement” approach. 

This move coincides with plans to end “Operation Chokepoint 2.0,” a controversial initiative that limited banking services for crypto businesses. Dismantling it would provide the crypto industry greater access to financial services and promote further innovation. See below Paul Grewal, Coinbase's Chief Legal Officer, sharing evidence about Operation Chokepoint 2.0 in his tweet below:

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4. Supporting Bipartisan Efforts for Self-Custody Rights 

Trump supports federal and state-level legislation that preserves Americans' right to self-custody digital assets, aligning with measures in states like Oklahoma and Louisiana. 

This bipartisan push includes efforts like the “Keep Your Coins Act,” which protects individuals from government interference in managing their digital assets. This initiative has garnered support from Republicans and Democrats alike, marking a shift toward broader acceptance of self-custody and asset ownership rights.

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5. Commuting Ross Ulbricht's Sentence 

As part of a broader criminal justice reform initiative, Trump declared he would commute the sentence of Ross Ulbricht, the founder of the Silk Road marketplace, who has become a cause célèbre among crypto advocates. Ulbricht's pardon would signify a pro-crypto stance and demonstrate Trump’s willingness to review past cases with fresh perspectives.

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6. Bitcoin Made in the USA - Mining 

Trump has committed to ensuring that Bitcoin mining and related technological advancements remain within U.S. borders. Following a meeting with Bitcoin mining leaders from companies like Riot Platforms, Marathon Digital, and Core Scientific, Trump emphasized that the U.S. should dominate global Bitcoin mining to avoid reliance on countries like China. By promoting American-based mining, Trump aims to make the U.S. “energy dominant” and increase domestic electricity output to support the industry.

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Trump has consistently highlighted the role of Bitcoin in the future of U.S. energy independence, declaring that if cryptocurrency will be central to the digital economy, it must be “mined, minted, and made in the USA.” This policy includes ambitious goals to boost energy production to support intensive mining operations and prevent foreign control of Bitcoin’s network security.

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Bitcoin's Role in Trump's Economic Vision

Bitcoin now takes center stage in America's economic strategy and changes your investment outlook. Bernstein's market analysts predict Bitcoin prices could reach $80,000-$90,000 within two months under Trump's presidency.

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Integration with US monetary policy

The United States is making a historic move to position itself as the "MicroStrategy of nations". The country stands strategically positioned to use this digital asset as the largest nation-state holder of Bitcoin. A fundamental change in monetary policy appears imminent since Senator Cynthia Lummis proposed broadening the Federal Reserve's $40 billion foreign currency holdings with Bitcoin.

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Attracting institutional investors

Bitcoin investment opportunities continue to expand with growing institutional interest. Standard Chartered analyst Geoff Kendrick projects Bitcoin could reach $125,000 by year-end under Trump's presidency. Several market factors drive this trend:

• Spot Bitcoin ETFs strengthen their market position
• Better regulatory clarity draws traditional finance
• Wider institutional adoption stimulates market growth

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Potential for $1 million Bitcoin

Bitcoin holdings could reach unprecedented levels as experts share ambitious targets for the coming years. Mark Moss, Host of the 'Mark Moss Show', believes $1 million Bitcoin by 2030 "is still in play". Several factors support this projection:

• Global liquidity expectations
• Bitcoin's sensitivity ratio to market movements
• Institutional adoption acceleration

Fidelity's director of global macro sees Bitcoin as "exponential gold". A single Bitcoin could reach approximately $700,000 if it achieves parity with gold's market cap. Bernstein strengthens this outlook with their $200,000 price target for Bitcoin by the end of 2025. These projections show a clear growth path for digital asset investments.

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Upcoming Bitcoin Catalysts

In addition to the favorable macroeconomic backdrop, other significant Bitcoin catalysts are on the horizon, with the potential to drive further adoption and price increases:

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Microsoft’s Potential Bitcoin Investment 

Microsoft is set to vote in December on whether to allocate a portion of its corporate treasury—potentially 1%—into Bitcoin. If this motion passes, it would represent a significant endorsement from one of the world's most valuable tech giants. 

An allocation by Microsoft would likely spur other major corporations to consider similar moves, adding momentum to institutional adoption and potentially leading to a cascade effect across large-scale investors.

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MicroStrategy’s Ambitious $42 Billion Bitcoin Plan

MicroStrategy, a pioneer in corporate Bitcoin investments, has announced a plan to raise $42 billion for additional Bitcoin acquisitions over the next three years. This move underscores MicroStrategy’s commitment to Bitcoin as a long-term asset and signals strong confidence in Bitcoin’s value proposition as a corporate treasury asset. 

As the firm embarks on this massive capital-raising effort, the sheer scale of its Bitcoin purchases could impact market liquidity and drive price increases, further attracting institutional and retail investors.

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The Opportunity to Front-run the U.S. Strategic BTC Reserve 

With Trump’s administration moving forward with a plan for a U.S. Bitcoin Reserve, retail, institutional, and sovereign investors (like Mr.100) have a unique opportunity to "front-run" this potential policy.

The Republican party is in a strong position to push this plan through, with control over the presidency, Senate, and likely the House. If this reserve is established, Bitcoin would be cemented as a key national asset, creating significant demand for the asset.

This development would likely inspire other countries to follow suit, accelerating Bitcoin’s global adoption. As a result, Bitcoin could solidify its position as a strategic, non-sovereign reserve asset in financial markets, further amplifying the opportunity for investors across all sectors to benefit from this shift in monetary policy.

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