Bitcoin ended a big week on Friday, November 8, after the digital currency hit a new record high following Donald Trump’s decisive victory in the 2024 presidential election.

The world’s most prominent cryptocurrency climbed to $77,312.18 on Friday, according to data Coinbase data provided by TradingView.

At the moment, the digital asset is up more than 12% in seven days and was trading at a new record high, additional Coinbase figures show.

After hitting this latest high, bitcoin bounced back slightly, but still held onto the vast majority of recent gains for the rest of the day.

When asked to explain the cryptocurrency’s price movements over the past week, market experts identified a short list of causal factors.

Trump victory optimistic for crypto

The first and most important development they pointed to as driving the digital currency’s recent swings was this year’s US presidential election, which resulted in a clear victory for Trump, who will serve a second term starting in January.

Several analysts pointed out how positive this outcome could be for the crypto/blockchain industry.

“Cryptocurrency enthusiasts are generally excited to see Trump in office, as he has been a vocal supporter of Bitcoin and blockchain technology,” Brett Sifling, investment advisor for Gerber Kawasaki Wealth & Investment Managementhe said via email.

TikTok influencer Wendy O also chimed in, pointing out that Trump’s open support for both Bitcoin and cryptocurrencies in general was extremely bullish for digital currency markets.

She stated in a direct message sent via X (formerly Twitter) that until recently, the US Securities and Exchange Commission’s aggressive approach to many participants in the crypto industry has stalled the sector, which in turn has caused some companies in the space to move. to jurisdictions with friendlier regulations.

“Now that Trump is elected, faith has been restored in the long-term crypto industry as Trump has promised comprehensive regulation, the creation of a strategic Bitcoin reserve, and the ability for individuals to retain control of their own keys,” continued Wendy O .

Sifling also shed some light on how the outcome of the 2024 presidential election is likely to affect financial and economic policy, including the crypto regulatory framework, and how these developments will combine to affect assets such as stocks and digital currencies such as bitcoin.

“While current regulators have given crypto companies mixed signals, I think people are under the impression that Trump will present a plan to solidify America’s place in the world’s crypto ecosystem,” he said.

“People like Gary Gensler also waged war on crypto during his tenure as regulator, and market participants believe he will soon be replaced by someone more industry-friendly,” Sifling said.

“This, combined with general optimism about deregulation and fewer taxes, has created a fairly favorable backdrop for risk assets like Bitcoin going forward.”

Brett Munster, portfolio manager for Blockforce Capitalhe also offered his views on how Trump’s victory could result in significant change to the regulatory framework of the world’s largest economy.

“A Trump presidency offers a potential turnaround for the crypto industry, moving it from years of regulatory hostility to a much more favorable position,” he wrote via email. “The Trump campaign has taken a much stronger pro-crypto stance than Harris’ platform, signaling potential support for digital assets at the federal level.”

“Even if some of Trump’s promises are campaign rhetoric, a neutral or opt-out position would be a substantial improvement over the previous administration’s more adversarial approach,” Munster noted.

AA reverse vote victory

The portfolio manager shed more light on the situation, claiming that the nation’s government officials are becoming more open to digital currencies.

“Notably, it’s not just Trump’s victory that suggests a favorable regulatory environment for crypto,” he said. “In Ohio, Bernie Moreno’s victory over incumbent Sherrod Brown — one of the Senate’s most vocal crypto critics and former chairman of the Senate Banking Committee — is a major win for the industry.”

“Moreno is a strong supporter of crypto, and with Tim Scott, another outspoken supporter, likely to chair the Banking Committee, the Senate’s influence on crypto policy may take a pro-industry turn. Scott’s public support, highlighted by his appearance at Bitcoin 2024, exemplifies a growing pro-crypto sentiment in Congress,” Munster said.

Fed cuts rates in November

Several analysts also highlighted the Federal Open Market Committee’s decision to cut rates again at its November policy meeting.

Following this event, the FOMC announced in a statement that it is lowering the target range for the federal funds rate by 25 basis points to between 450 and 475 bp.

Independent cryptocurrency analyst Armando Aguilar spoke about this development, saying it helped inject markets with a more optimistic sentiment.

The federal funds rate has implications for a wide range of borrowing costs, and lowering it can make it easier for consumers and businesses to get credit, which can help spur more robust economic growth.

Many different risk assets, including stocks and cryptocurrencies, could benefit from stronger economic conditions and the impact they have on the mindset of global investors.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.