LONDON (AP) 鈥� The price of bitcoin hit a new high Wednesday and crypto-related shares rallied as investors bet that former President Donald Trump's victory in the will be a boon for cryptocurrencies.
Bitcoin jumped nearly 8% in early trading, climbing above $75,000 and smashing its previous record set in March. Other cryptocurrencies also soared, including ether, the world's second most popular cryptocurrency after bitcoin, which rallied 8%.
Another token, dogecoin, rocketed as much as 18%. It's the of billionaire Elon Musk, one of Trump's most prominent supporters.
Crypto-related shares outran the rest of the stock market. Coinbase, one of the biggest cryptocurrency exchanges, leaped 17%. Online brokerage Robinhood Markets, which offers crypto trading, soared 12% and MicroStrategy, which says it is the 鈥渓argest corporate holder of bitcoin,鈥� jumped 10%.
Trump was previously a crypto skeptic but changed his mind and cryptocurrencies ahead of the election.
He has pledged to make America "the of the planet" and create a 鈥渟trategic reserve鈥� of bitcoin. His campaign accepted donations in cryptocurrency and he courted crypto fans at a bitcoin conference in July. He also launched World Liberty Financial, a with family members to trade cryptocurrencies.
Bitcoin is up 77% this year.
鈥淏itcoin is the one asset that was always going to soar if Trump returned to the White House," said Russ Mould, investment director at AJ Bell, a British online investment platform. After touching its new high, the market is now speculating about 鈥渨hen, not if, it will smash through $100,000," he said.
鈥淭rump has already declared his love of the digital currency and crypto traders now have a new narrative by which to get even more excited about where the price could go,鈥� Mould said.
But other experts warned of the risks.
鈥淚nvestors should only dabble in crypto with money that they can be prepared to lose,鈥� said Susannah Streeter, head of money and markets at Hargreaves Lansdown. 鈥淏ecause we鈥檝e seen these wild swings in the past.鈥�
Crypto industry players welcomed Trump's victory, in hopes that he would be able to push through legislative and regulatory changes that they've long lobbied for.
Trump had already promised that, if elected, he would remove the chair of the Securities and Exchange Commission, Gary Gensler, who has been leading the U.S. government鈥檚 on the crypto industry.
鈥淭onight the crypto voter has spoken decisively 鈥� across party lines and in key races across the country,鈥� said Coinbase CEO Brian Armstrong . 鈥淎mericans disproportionately care about crypto and want clear rules of the road for digital assets. We look forward to working with the new Congress to deliver it,鈥� Armstrong posted on X.
Streeter said Trump's administration would most likely pursue 鈥渓ight touch regulation鈥� for the crypto industry.
鈥淐ertainly that鈥檚 what crypto fans would want," she said. 鈥淭hey want the sheen of legitimacy to be brought to crypto, but they don鈥檛 want regulations to be too onerous to stop opportunities and innovation.鈥�
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Associated Press writer Danica Kirka contributed to this report.
Kelvin Chan, The Associated Press
