Bitcoin has surged to an all-time high of $81,858, surpassing the $80,000 mark late Sunday, driven by renewed optimism in the wake of the US election. With pro-crypto policies expected under President-elect Donald Trump, the digital currency has gained significant momentum, reflecting a nearly 18.5% increase in value over the past week.

By Monday morning, Bitcoin had stabilized at around $81,500, according to Forbes, while PUNCH Online’s check of CoinMarketCap listed it at $82,368.15. The surge brought Bitcoin’s market capitalization to $2.79 trillion, with a trading volume of $237.48 billion by 11:26 a.m. Nigerian time.

The rapid price increase, especially on Sunday alone, has sparked widespread optimism across the entire crypto sector. Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) also saw notable gains, with Ether rising by 28.7% in the past week to $3,165, while Dogecoin skyrocketed by 83%.

Analysts attribute much of this bullish sentiment to the political shift in the United States, particularly the Republican gains in both the Senate and House. This change is expected to usher in a more crypto-friendly regulatory environment, with Trump’s administration embracing the digital currency sector. In a major pro-crypto move, Trump has pledged to retain “100 percent of all the Bitcoin the US government currently holds or acquires in the future” and plans to remove SEC Chair Gary Gensler, known for his stringent stance on crypto regulation.

Traders are now calling the recent rally the “beginning” of a potential breakout, though caution remains due to Bitcoin’s well-known volatility. One trader noted that while Bitcoin’s upward momentum has been strong since Trump’s electoral win, fluctuations are still a concern.

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The market surge has extended beyond Bitcoin, also benefiting related stocks. Coinbase shares have risen 50% in the past five days, with a 15.6% jump in pre-market trading on Monday, bringing its value to $312.92.

Trump’s pro-crypto stance is garnering support from key industry figures, including billionaires Cameron and Tyler Winklevoss, and venture capitalist Marc Andreessen. His vice president-elect, Senator JD Vance of Ohio, is a known advocate for Bitcoin, further cementing the administration’s alignment with the crypto sector.

Industry analysts are optimistic about Bitcoin’s future, with Bernstein analysts forecasting the cryptocurrency could reach between $80,000 and $90,000 within the next two months if Trump secures the presidency. Some forecasts, such as those from Standard Chartered’s Geoff Kendrick, suggest Bitcoin could even soar to $125,000 by the end of 2024.

The 2024 election cycle has seen significant involvement from the crypto industry, with Public Citizen reporting that the sector accounted for 44% of all corporate donations. Pro-crypto political action committees (PACs) aligned with both Republicans and Democrats collectively contributed $135 million to the election, according to The New York Times.

With Bitcoin continuing to break records, the crypto sector remains on a high, even as traders stay cautiously optimistic about the future. As the US prepares for potential regulatory changes in 2025, some speculators believe the rally could continue, though others warn of possible price retracements.