Bitcoin reached a new all-time high of over $86,000 as cryptocurrency markets reacted positively to the election of Donald Trump as US president. Investors are optimistic about a friendlier regulatory environment for digital assets, especially with pro-crypto candidates gaining seats in Congress. Trump's promises to establish the US as a crypto-friendly nation and create a national Bitcoin reserve have generated positive sentiment among investors. There is particular focus on Trump's vow to fire SEC Chairman Gary Gensler, who oversaw increased regulatory scrutiny of cryptocurrencies. The crypto industry has spent significant funds supporting pro-crypto candidates in the last election cycle, and many of these candidates were successful. Big names like Elon Musk and Eric Trump's involvement in cryptocurrencies further bolster the crypto-friendly environment. The anticipation of regulatory clarity and institutional involvement has led to a surge in cryptocurrency-related ETFs, with Bitcoin ETFs seeing record inflows. Deutsche Bank research analysts suggest that Trump's pragmatic approach could lead to faster regulatory clarity, increased institutional involvement, and wider mainstream adoption of cryptocurrencies. Furthermore, the Fed's interest rate cuts could provide a supportive economic backdrop for the crypto market.



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