The price of Bitcoin has surged past the 81,000 US dollar (£63,000) mark for the first time as the cryptocurrency continues to rally higher after Donald Trump’s victory in the US election last week.

The world’s biggest cryptocurrency has soared since Mr Trump’s election win, sailing past the new record milestone on the prospect of a Republican-led congress with pro-crypto politicians.

Bitcoin has seen its value swell by more than 120% in the past year and by 21% in the past week alone, with other cryptocurrencies also surging ahead, such as dogecoin, which is the favourite of Tesla billionaire Elon Musk – one of Mr Trump’s most prominent supporters.

Bitcoin always seemed a likely beneficiary of a Trump victory and so it is proving

Mr Trump – once a crypto-sceptic – performed a U-turn ahead of the election and pledged to make the US the “crypto capital of the planet” and create a “strategic reserve” of bitcoin.

His campaign accepted donations in cryptocurrency and he courted crypto fans at a bitcoin conference in July.

Elsewhere, UK and European stock markets also lifted higher in morning trading on Monday, with the FTSE 100 Index up 0.8% at 8137.42 points, and pre-market trading pointing to further gains on Wall Street after last week’s bumper rally.

The FTSE 100 had seen falls last week amid concerns over tariffs and Mr Trump’s trade policies, but these worries appeared to be easing.

AJ Bell investment director Russ Mould said: “Bitcoin always seemed a likely beneficiary of a Trump victory and so it is proving as the cryptocurrency hits a new record high.

“It’s not just the incoming occupant of the White House which has helped Bitcoin, there have also been down-ticket victories for candidates who have a positive stance on the asset class.

“Notably, one of its main critics, Senate banking chair and Democrat Sherrod Brown, fell to his Republican opponent and a crypto fan Bernie Moreno.”

Susannah Streeter, head of money and markets at Hargreaves Lansdown, added: “Bitcoin speculators are betting on a more clement regulatory environment, and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand.”

Bitcoin is the biggest and oldest type of cryptocurrency, having been invented in 2008.

Crypto is a type of digital money designed to be used over the internet.

It does not exist physically, like dollars or pounds, but can be sent and received and is also traded for money.