Bitcoin rises and reaches a new peak near $82,000 with anticipation of significant support from the U.S. administration.

The digital currency Bitcoin continued to expand its profits during the first trading session of the week on Monday, trading at its highest levels ever after surpassing $81,000. This surge comes as a result of a wave of optimism embraced by investors following the victory of former U.S. President Donald Trump, a major supporter of cryptocurrencies, along with the potential for Congress to also be supportive of cryptocurrencies.

Since the announcement of the election results last Wednesday and Trump’s election, the broader cryptocurrency market has seen massive gains, with Bitcoin continuing to make significant profits throughout the week. Today, it is trading at around $81,210, an increase of about 1.9%, after reaching a high of $81,880 earlier in the session.

So far, the recent performance of the cryptocurrency market has been strong, with Bitcoin's market capitalization rising to $1.6 trillion, boosting the total market capitalization of cryptocurrencies to $2.8 trillion. The rise in Bitcoin’s price has led to liquidations from 211,649 traders, with the total liquidation value approximately $624.9 million over the past 24 hours.

This comes at a time when a significant number of elected representatives in the U.S. Congress have shown their support for digital assets. In the House of Representatives, 266 crypto-supporting representatives were elected, compared to only 120 opponents of cryptocurrency policies, creating a favorable legislative environment for the digital asset market.

This trend has bolstered Bitcoin's rise alongside ambitious plans to create a strategic reserve for Bitcoin and recent monetary policy moves, as the U.S. Federal Reserve lowered interest rates by 25 basis points.

It is worth noting that prior to the election, Trump revealed plans for a regulatory initiative for the digital asset market aimed at developing decentralized lending services. This initiative includes distributing $16.5 billion to creditors of the collapsed FTX exchange from nearly two years ago, the expected appointment of a new SEC chair supportive of digital assets, and efforts to repeal the restrictive SAB 121 rule.

Additional developments also include the anticipated adoption of the Bitcoin Act of 2024, which proposes recognizing Bitcoin as a strategic reserve asset similar to gold. Under this legislation, the U.S. government aims to acquire up to 5% of the total Bitcoin supply and hold it as part of the national reserves.