Recently, Bitcoin, the world’s first and largest cryptocurrency, hit a new record, surpassing $80,000. This meteoric surge in Bitcoin’s price sparked renewed discussions about its driving factors and its future. While Bitcoin’s value has always been explosive, the recent price surge is gaining widespread attention due to a renowned catalyst: Donald Trump, who gained victory in the U.S presidential election.
Uncover the reason behind Bitcoin’s price surge and why Trump’s influence is boosting and shaping the crypto world.
Bitcoin’s Meteoric Rise: What’s Behind It?
The first pioneering and world-largest cryptocurrency, known as Bitcoin, has always been characterized by highly volatile price fluctuations. But the new record hitted of recent, surpassing $80,000, is a new phenomenon in the crypto’s growth. The price rose quickly on election night after it became obvious that Donald Trump would gain victory and has continued rising after his victory. Investors, analysts, and enthusiasts alike are left wondering: what is driving this phenomenon increase?
We can identify several reasons behind Bitcoin’s rise. There has been a consistent inflow of institutional capital over the recent past, with big firms and hedge funds embracing Bitcoin as an inflation hedge and digital currency. However, financial markets and institutions globally and their uncertainties on the traditional financial systems have promoted demand for decentralized digital currencies such as Bitcoin.
However, one of the most interesting factors getting noticed is the political aspect, especially Trump. The crypto sector believes that Trump’s victory is an assertive sign for Bitcoin and other digital currencies. Is it possible that some of Trump’s impacts are the ones that are close to being seen in today’s increasing increment of Bitcoin?
Why Trump is Boosting Crypto Especially Bitcoin
Trump’s pro-crypto promises boost Bitcoin’s value by over 80%, and other cryptocurrencies like Dogecoin—backed by Trump’s ardent supporter, CEO Elon Musk; Tesla Founder—is also seeing an upward rise, contributing further to the positive impact around digital assets.
Although Trump himself has not publicly thrown his full support for Bitcoin as an investment instrument, once stating it “was based on thin air,” he has fully accepted crypto recently, and his actions have greatly influenced the altcoins market.
One big reason that led to the change of Trump’s skepticism is due to his financial stake in it. Trump and his family debuted their new cryptocurrency platform called World Liberty Financial in September.
Trump said of the cryptocurrency sector on September 16 while unveiling his new cryptocurrency platform, “It’s very young and very growing,” and “I do believe in it.”.
Unlike the Biden administration, in contrast, which has far been more skeptical of crypto. Trump vows to make the U.S the “crypto capital of the planet” and keep 100% of all the BTC the U.S government currently holds or will acquire in the future.
With his objectionable stance regarding the traditional banking systems, right from the campaign period, his presidency has fostered the culture of decentralized digital currencies such as cryptocurrencies.
Trump’s Pro-Crypto Stance
Trump complained multiple times about the Federal Reserve and its politics regarding interest rates and its effect on economic performance throughout his presidency. He said this was happening because the Federal was interfering with the U.S economy and placing the country in a weak stance against competitors in the global market.
During the campaign, Trump announced his intention of cutting the regulation of the crypto industry along with the creation of the strategic coin reserves and the appointment of pro-crypto regulators. The Securities and Exchange Commission (SEC) chairman Gary Gensler, appointed by Biden in 2021, is one of his first targets for dismissal, as per the campaign announcements. Gensler has adopted aggressive approaches in regards to regulation of crypto, which makes his potential removal very interesting for crypto enthusiasts.
Matt Simpson, a market analyst at StoneX Financial, has this to say: “If the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector.” Simpson pointed out that deregulation may cause higher prices; Bitcoin may rise as high as $100,000.
Conclusion: The Future Of Bitcoin And The Crypto Industry
A significant rise in Bitcoin price and the possibility of a suitable legal framework for cryptocurrencies also increase the fund’s optimism, but experts still caution that the crypto industry remains volatile even with the current potentials for deregulation under Trump’s administration.
Thus, with the Trump administration coming to power and moving forward its pro-cryptocurrencies agenda, there would be more opportunities for the potential growth of Bitcoin and other coins for investors, although the market belongs to the risk-bearers.
While the U.S continues to establish its stance on the direction of cryptocurrency policies, the future months will determine whether the course of Bitcoin will remain bullish or bearish. Bitcoin has now surpassed $80,000, and with the prospect of continued liberalization under a Republican administration, the next wave of the crypto industry may have only started.
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