London: Bitcoin reached an all-time high of $80,000 on Sunday, marking a historic milestone for the cryptocurrency. This surge is attributed to speculation that Donald Trump's potential return to the White House could result in favorable policies for digital currencies.

The digital asset achieved the milestone shortly after 12:00 pm GMT, extending a rally that began last week following Trump's victory in the U.S. presidential election. Analysts believe expectations of deregulation under a Trump administration have fueled market optimism.

Bitcoin's ascent has been dramatic, breaking through $75,000 on Wednesday and surpassing its previous peak of $73,797.98 set in March. Traders view Trump as a pro-crypto figure, contrasting sharply with the Democratic candidate Kamala Harris.

Trump, who once criticized cryptocurrencies as fraudulent, has since embraced them, even launching his own platform, World Liberty Financial. While its initial token sale faced challenges, the announcement underscored his newfound commitment to digital finance.

During his campaign, Trump pledged to position the U.S. as a global leader in cryptocurrency innovation, hinting at reduced regulation and appointing figures like Elon Musk to spearhead audits of governmental inefficiencies. His earlier tax cuts during his presidency were also credited with boosting investments in high-growth assets like Bitcoin.

Bitcoin's meteoric rise comes amid growing adoption and continued scrutiny of the volatile crypto market. Despite setbacks, including the collapse of major platforms like FTX, Bitcoin's new record signals its enduring appeal to investors.