• Bitcoin reached a record high of over $90,000, attributed to optimism about Trump's presidency and its potential impact on cryptocurrencies.
• The market anticipates a pro-Bitcoin administration could lead to favorable legislation, sparking a surge in crypto mining and trading stocks.
• The election results are expected to enable regulated businesses to engage more with public blockchain technology.
• Despite the excitement, experts advise caution due to potential volatility in the crypto market.

Bitcoin, the world's largest cryptocurrency, made a historic leap past the $90,000 mark on Wednesday, setting a new all-time high. This surge, showing no signs of slowing down, is largely attributed to the expectations that Donald Trump's presidency will be beneficial for cryptocurrencies.

Since the November 5 election, Bitcoin has seen a 32% increase, with its value briefly touching $93,480 before settling slightly lower at $88,185.

The cryptocurrency market has been one of the most notable movers since the election. Smaller cryptocurrencies have also experienced significant growth. Ether, for instance, has risen 37% since Election Day, while Dogecoin, a volatile alternative token promoted by billionaire and Trump ally Elon Musk, has surged by more than 150%.

Trump's Pro-Bitcoin Administration Fuels Market Optimism

The market's optimism stems from the belief that a pro-Bitcoin administration could lead to legislation that not only allows U.S. citizens to self-custody Bitcoin but also potentially allows Bitcoin to serve as a strategic reserve asset for the U.S. Treasury. Damon Polistina, head of research at Eaglebrook, highlighted this sentiment, stating that the market is hopeful about what this could mean for Bitcoin in the medium to long term.

Trump's positive stance towards digital assets was evident during his campaign, where he promised to make the United States the crypto capital of the planet and accumulate a national stockpile of Bitcoin. While it remains unclear how or when this could happen, the possibility has sparked a speculative surge in crypto mining and trading stocks.

Crypto Industry Anticipates Regulatory Changes

Zach Pandl, head of research at Grayscale Investments, believes that the election results will enable large, regulated businesses like banks, custodians, and exchanges to engage with public blockchain technology in ways they haven't in the past. This sentiment is echoed by software company and Bitcoin investor MicroStrategy, which announced that it had spent about $2 billion buying Bitcoin between October 31 and November 10.

The crypto community is also hopeful about an end to increased scrutiny from the Securities and Exchange Commission under Trump's administration. In September, Trump and his sons announced a new crypto business, World Liberty Financial, further solidifying their commitment to the crypto industry.

Despite the excitement, some experts advise caution. Georgi Koreli, CEO of Hinkal, a blockchain-based private trading platform, warned that with Bitcoin reaching new all-time highs, investors should be wary of potential volatility. He clarified that this doesn't mean Bitcoin won't reach $95K or even $100K soon, but rather that Bitcoin might pause or slide back to regain its strength.