FX168 Financial News Agency (Asia Pacific) Trump successfully surpassed the 270 vote threshold in the presidential election on Wednesday, November 6th, becoming the new president of the United States. After his victory, Republican Senator Cynthia Lummis from Wyoming tweeted an important signal, stating that the new government is preparing to establish a US bitcoin global strategy reserve, causing bitcoin to briefly touch a high of $76,400. #Latest News on Bitcoin#
Lummis wrote: 'We will establish a strategic bitcoin reserve.'
(Source: Twitter)
After her speech, bitcoin briefly surged to a historical high of $76,400, then fell back to $75,600 for a breather. This milestone exceeded the peak of $73,776 set in March and raised the prices of many other cryptos.
(Bitcoin daily chart, Source: FX168)
CoinTelegraph reported that she plans to continue promoting the establishment of a bitcoin global strategy reserve. The Republican from Wyoming introduced the "Bitcoin Act" in July, requiring the US government to purchase 1 million bitcoins, about 5% of the total supply, and hold them for at least 20 years.
(Source: CoinTelegraph)
The Republican Party is expected to gain a majority in the U.S. Senate after flipping three seats on election day, therefore Lummis and her colleagues may have the necessary votes to implement the plan. The bill she proposed was based on an idea put forward by then-presidential candidate Trump, who suggested that the U.S. government should not sell any confiscated bitcoins. #US election#
Since taking office in 2021, Lummis has been one of the most supportive figures of cryptocurrencies in Congress. On Tuesday, she did not run for re-election, but as Republicans, including Trump, campaign in 2024, she continues to support digital asset policies.
As major news outlets reported that Trump and the Republican Party are projected to win the presidential election, majority control of the Senate, and majority control of the House, the price of Bitcoin surged to over $76,000. The Democrats will continue to control the Senate until January 3, while the incumbent President Biden will serve until January 20, the presidential inauguration day.
Although the majority control of the House was uncertain at the time of this article's publication, some industry leaders believe that the Democratic Party's performance may be a factor in the party's stance on cryptocurrencies. Democratic Senator Sherrod Brown is one of the party's voices against cryptocurrencies in Congress, but his seat was taken by Republican Bernie Moreno.
Entrepreneur accelerator Y Combinator co-founder Paul Graham mentioned in a tweet on Wednesday about the Democratic Party election results: "Their biggest mistake was angering the entire crypto community, which was completely unnecessary, their actions were not to win favor in other districts."
The UK's Financial Times reported that senior cryptocurrency executives welcomed Trump's decisive victory and the Republican Party's potential 'sweep' of the U.S. Congress, seeing it as an opportunity to change Washington's attitude towards the industry.
(Source: Financial Times)
Trump positions himself as a candidate supportive of cryptos, vowing to end the so-called "persecution" of the industry and ensure the US enacts more crypto-friendly legislation.
Kris Marszalek, CEO of the exchange Crypto.com, stated: "The future of cryptos has never been brighter than today."
Trump's victory comes as some of Silicon Valley's biggest investors pour massive campaign funds to support crypto-friendly candidates. This includes venture capital firm Andreessen Horowitz and Gemini's co-founders Tyler and Cameron Winklevoss.
"We are on the edge of a new American Renaissance," Tyler tweeted. "The crypto army is on the attack."
Brian Armstrong, CEO of the largest US crypto exchange Coinbase, said: "On Wednesday, crypto voters made a decisive decision. Americans are particularly concerned about cryptos, hoping for clear rules for digital assets."
Digital asset investors and executives hope Trump can fulfill some campaign promises, including establishing a US bitcoin strategic reserve and dismissing US Securities and Exchange Commission Chairman Gary Gensler, who has been disparaged by crypto enthusiasts.
The US Securities and Exchange Commission has currently filed lawsuits against crypto companies, including exchanges Coinbase, Kraken, and Crypto.com, blockchain software company Consensys, and payment provider Ripple Labs.
Matt Hougan, Chief Investment Officer of the crypto fund management company Bitwise, stated that the surge of bitcoin and other crypto tokens on election night indicates that the industry is "gradually gaining confidence... it will face a neutral or even positive regulatory environment".
Due to the potential victory of Trump, stocks of crypto miners surged significantly, as the Republican candidate previously pledged to ensure bitcoin mining in the USA.
Stock prices of Riot Platforms, Marathon Digital, and Core Scientific increased by 12%, 9%, and 7% respectively, while the stock price of the Coinbase exchange soared by 19%.
Jake Ostrovskis, an OTC trader at crypto market maker Wintermute, stated that a Republican win in the presidential election is "important as it will increase the chances of crypto-related bills passing in Congress - at least in the eyes of market participants".
This week, the inflow of funds from US exchange-traded funds directly investing in bitcoin also drove the rise of bitcoin. BlackRock's funds, a market leader, attracted over $2.4 billion in funds in the past week, surpassing a total of $30 billion in assets.
