Bitcoin surges towards $90,000

SINGAPORE/LONDON:

Bitcoin rallied to the verge of $90,000 on Tuesday, riding a wave of euphoria since the election of Donald Trump as US president, on expectations that his administration will be crypto friendly.

The world's biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and touched $89,982 – a gain of around 30% since November 5. It was last down 1.4% at $86,730.

Bitcoin is surging along with Elon Musk's automaker Tesla, which is up nearly 40% since voting results rolled in, as investors believe Trump's friends and interests will do well while he is in office.

"The crypto enthusiasts think they have a like-minded incoming president," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "The thing about bitcoin at the end of the day is that there is no valuation anchor to it, it's hard to get a grip on fair value. So, when sentiment is very positive, it does get carried away a lot more than other asset classes."

Trump embraced digital assets during his campaign, promising to make the US the "crypto capital of the planet" and to accumulate a national stockpile of bitcoin.