Bitcoin reaches record high of over $87,000 following Trump election victory

Bitcoin has reached a new record high, surpassing $87,000 for the first time. This surge follows Donald Trump's recent election victory, with bitcoin rising over 28% in the past week. The rally is attributed to expectations of a more favorable regulatory environment for cryptocurrencies. Trump's administration is seen as potentially supportive of the crypto industry, contrasting with previous regulatory pressures. His campaign accepted cryptocurrency donations, and he has expressed intentions to promote the U.S. as a global crypto hub. Spot bitcoin exchange-traded funds have also driven significant investment inflows. Despite the recent gains, experts caution about the volatility of cryptocurrencies. Investors are advised to only invest what they can afford to lose, as past price swings have been drastic. The environmental impact of bitcoin mining remains a concern, particularly regarding energy consumption.