Bitcoin has smashed through the $90,000 mark, reaching an all-time high in a rally that shows no signs of easing.

The surge has been fueled by market expectations that Donald Trump’s presidency will be highly beneficial for cryptocurrencies. Since the Nov. 5 election, Bitcoin has risen 32%, peaking at a record high of $93,480 before slightly declining to $88,185.

Smaller cryptocurrencies have also seen significant gains. Ether has risen by 37% since Election Day, while Dogecoin, an alternative token promoted by billionaire and Trump ally Elon Musk, has surged by over 150%.

Damon Polistina, head of research at Eaglebrook, noted that the market’s optimism stems from the potential for a pro-Bitcoin administration, Senate, and possible legislation that could support Bitcoin.

“The market is hopeful about what this could mean for Bitcoin in the medium to long term. We might see legislation that not only allows U.S. citizens to self-custody Bitcoin but also considers Bitcoin as a strategic reserve asset for the U.S. Treasury,” Polistina said.

Regulatory uncertainty has long been a major challenge for the cryptocurrency sector, acting as a deterrent for advisors allocating Bitcoin for their clients.

However, Trump's pro-crypto stance has eased some of these concerns. During his campaign, Trump embraced digital assets and promised to make the United States the “crypto capital of the planet” while accumulating a national stockpile of Bitcoin.

Zach Pandl, head of research at Grayscale Investments, said the election results would enable large, regulated businesses like banks, custodians, and exchanges to engage with public blockchain technology in ways they haven’t before.

In line with the market enthusiasm, software company and Bitcoin investor MicroStrategy announced that it had spent about $2 billion buying Bitcoin between October 31 and November 10. The company's shares reached a record high on Tuesday.

Trump’s administration is also expected to bring an end to the increased scrutiny from the Securities and Exchange Commission (SEC). In September, Trump and his sons announced a new crypto business called World Liberty Financial.

JJ Kinahan, CEO of IG North America and president of its tastytrade retail brokerage, commented, “Many people believe that we will inevitably see Bitcoin reach $100,000. I expect Bitcoin to continue building momentum, at least until after the inauguration when we find out what the real plans are.”

Despite the optimism, some experts have advised investors to be cautious. Georgi Koreli, CEO of the blockchain-based private trading platform Hinkal, warned, “With Bitcoin reaching $90,000 and hitting a new all-time high, investors should be cautious about potential volatility ahead. This doesn’t mean we won’t see $95,000 or even $100,000 soon, but rather that Bitcoin might need to pause or slide back to regain its strength.”