The price of bitcoin soared to a record high of $94,839, extending a rally that has seen its value surge by nearly 40% since Donald Trump’s re-election victory.

The digital currency, worth $7,333 five years ago, has benefited from optimism surrounding a potentially crypto-friendly regulatory environment during Trump’s second term.

Once a sceptic of cryptocurrencies, Trump has pledged to transform the US into “the crypto capital of the planet” and establish a “strategic reserve” of bitcoin. His campaign actively accepted cryptocurrency donations, and he engaged with crypto enthusiasts at a bitcoin conference in July. Trump has also launched World Liberty Financial, a venture with family members focused on cryptocurrency trading.

Trump’s victory has prompted Republicans to invite crypto leaders to Washington for discussions on a new crypto policy framework. Industry executives are hopeful that Trump will deliver on promises to enact legislative and regulatory changes, including his commitment to remove Gary Gensler, the chair of the Securities and Exchange Commission (SEC), who has been spearheading the government’s crackdown on cryptocurrencies.

Stéphane Ouellette, CEO of crypto trading firm FRNT Financial, commented: “Trump’s seeming interest to push further into crypto on a personal level has contributed to optimism that crypto will be a top priority when Trump takes office.”

US bitcoin exchange-traded products have also seen a boost, with $4.2 billion in inflows since Trump’s victory—accounting for 15% of total inflows since these products launched on US stock exchanges earlier this year.

Chris Weston, head of research at Australian broker Pepperstone, noted the potential for further growth: “Another kick higher should bring in a fresh chase from those who like to buy what’s strong.”

The crypto community is cautiously optimistic about Trump’s pro-crypto stance, seeing it as an opportunity to solidify the US as a global hub for digital currencies. However, critics warn that bitcoin’s notorious volatility and speculative nature may present risks for both investors and broader economic stability.

Bitcoin, created in 2008 by the mysterious figure Satoshi Nakamoto, has no physical form and was initially worth almost nothing. Over the years, its adoption and popularity have grown, though its price remains highly volatile. With Trump’s endorsement and promises of a supportive policy environment, the cryptocurrency has found fresh momentum.

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Bitcoin hits record $94,000 as trump vows to make us ‘crypto capital’