Bitcoin, the world’s leading cryptocurrency, reached an all-time high of over $81,000 earlier this week.. The surge comes as a combination of factors—including a shift in the political landscape and the rise of cryptocurrency exchange-traded funds (ETFs)—has spurred investor optimism.

Factors Behind the Surge

The momentum behind Bitcoin has been fueled by both external and internal factors. 

One of the major catalysts for this rally has been the positive shift in U.S. politics, where pro-crypto candidates have gained ground in Congress. Over $119 million has been invested by the cryptocurrency industry to support pro-crypto congressional candidates, hoping for favorable legislation to promote digital assets. 

In the House of Representatives, 268 pro-crypto candidates emerged victorious, compared with just 122 candidates against cryptocurrency, according to data from Stand With Crypto (SWC). In the Senate, 19 crypto supporters were elected, while 12 anti-crypto senators were elected. 

Bitcoin ETFs, in particular, have seen substantial inflows, with Bitcoin spot ETFs recording a record $1.63 billion in net inflows from November 4 to November 8.

As a result, Bitcoin has gained around 93% in 2024, and this momentum is expected to continue. Richard Galvin, founder of DACM, a crypto-focused investment firm, pointed out that the “buying pressure” in Bitcoin could continue for some time, as the crypto market benefits from the regulatory shift and interest rate cuts by the U.S. Federal Reserve.

The Role of Elon Musk and Trump

In a recent post on X, Musk described America’s debt growth as "unsustainable.” Earlier, Trump suggested Bitcoin could be used to "pay off" the $35 trillion national debt.

The US President-Elect embraced Bitcoin's potential, despite initially calling cryptocurrencies a "scam" during his first presidency. During his re-election campaign, he reversed his stance and promised to make the U.S. the "crypto capital of the world." This change in rhetoric has been welcomed by the crypto community, and his victory in the election has led to further optimism about the future of Bitcoin and other digital assets.

In fact, Trump has vowed to replace the current chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, who has been criticized for his tough stance on the crypto industry. 

As Bitcoin breaks new records, the question on everyone’s mind is whether the rally will continue. Some analysts remain cautious, with CryptoQuant CEO Ki Young Ju predicting a potential end-of-year correction, citing an overheated futures market. He believes that Bitcoin could end the year around $59,000.