This follows US President-elect Donald Trump’s campaign promises to make the US “the crypto capital of the planet” by creating a strategic bitcoin reserve and appointing crypto-friendly regulators.

The cryptocurrency has gained over 80% this year, with other digital assets like Dogecoin also rising. Analysts suggest deregulation could propel bitcoin to $100,000 (c. £78,000), though volatility remains a risk. The president-elect has vowed to replace the current chair of the Securities and Exchange Commission, who has overseen a crackdown on the crypto industry, BBC reports.

This surge comes amidst a broader market rally fuelled by expectations of tax cuts and deregulation under the new administration. With potential control of both houses of Congress, the Republicans are poised to swiftly implement their agenda.