Bitcoin hits $80,000 for the first time as crypto traders bask in Trump election victory
Budrul Chukrut | SOPA Images | Lightrocket | Getty Images
Cryptocurrencies extended their rally on Sunday, with bitcoin touching $80,000 for the first time ever.
The price of the flagship cryptocurrency was last higher by 4.5% at $79,800.19, according to Coin Metrics. Ether rose 3%, after passing the $3,000 level on Saturday. It last changed hands at $3,203.10.
Smaller coins saw bigger moves as investors continued to digest the implications of a second term for President-elect Donald Trump. The payments coin XRP surged 11%. The decentralized finance token tied to Cardano rocketed 40%. Memecoins dogecoin and Shiba Inu coin soared 17% and 31%, respectively.
“Crypto is poised to enter a golden era,” Alex Thorn, head of research at Galaxy Digital, said in a research note Friday. “Trump has promised to make America the ‘crypto capital of the world’ and his high level team is filled with strong crypto advocates … . The pro-crypto nature of his team, family, and donors increases the likelihood that Trump follows through on his campaign promises to the industry.”
Bitcoin touches $80,000 on Sunday for the first time ever.
Bitcoin was deemed a safe asset regardless of the outcome of the election — it is not considered a security, even by the Securities and Exchange Commission, and Trump has made big overtures about bitcoin like entertaining the idea of a strategic national bitcoin reserve and speaking about the need to keep all bitcoin mined in America.
Ether and other cryptocurrencies, however, stand to gain much more from the crypto-friendly regulatory environment that Trump has promised and appears to be a priority for many in his inner circle. For example, one reason the spot bitcoin ETFs didn’t see as much success as bitcoin ETFs is because they don’t distribute staking rewards. Many in the industry are hopeful that will change next year.
“In this environment, over the next two years we expect that bitcoin and other digital assets will trade significantly higher than the current all-time high,” Thorn said. “What was once an oppressive headwind in the world’s largest capital market will now shift to a tailwind, and no one is bullish enough.”
Bitcoin and ether have gained 18% and 32%, respectively, since election day. Coinbase rose 48% last week, its best week since January 2023.
Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), during a fireside chat at the Indian Institute of Science (IISc) in Bengaluru, India, on Thursday, Nov. 21, 2024.
Gabriela Bhaskar | Bloomberg | Getty Images
Shares of Advanced Micro Devices jumped more than 6% on a report that IBM can utilize the company’s chips to run certain quantum computing algorithms.
IBM shares gained about 8% and headed for their best day since January.
Reuters reported on Friday that a paper will publish next week showing that IBM can run a quantum error-correction algorithm on AMD’s field-programmable gate array chips.
Representatives from AMD and IBM didn’t immediately respond to requests for comment.
In August, the two companies announced an agreement to develop quantum computing capabilities and integrate technologies. IBM has also said it plans to debut a quantum computer by 2029.
The technology utilizes quantum mechanics to address problems that traditional computers are unable to solve. Technology giants such as Google, Microsoft and Amazon are also racing to develop quantum computing.
Last year, Microsoft rolled out its first quantum computing chip, while Google launched its breakthrough WIllow. A top quantum executive at the internet search company told CNBC in March that the technology was “five years out from a real breakout.”
The various announcements have brought renewed interest to the quantum space, boosting stocks like D-Wave Quantum, Rigetti Computing, and IonQ, which all climbed on Friday.
The Trump administration on Thursday refuted a report that it was negotiating stakes in quantum companies.
WATCH: Commerce Department denies it is currently in talks for stakes in quantum companies
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