US Election Influence On Bitcoin
The price of Bitcoin has skyrocketed to an unprecedented $80,000 (£62,000) following Donald Trump’s decisive victory in the US election last week. This remarkable surge is largely attributed to Trump’s pledge to make the US “the crypto capital of the planet” during his campaign trail ¹. As a result, the world’s largest cryptocurrency has experienced an astonishing 80% increase in value this year.
The Republicans’ impending control of Congress, having secured the presidency and a majority in the Senate, has also contributed to this upward trend. Other cryptocurrencies, such as Dogecoin, which has been endorsed by Elon Musk, a prominent Trump supporter, are also witnessing significant gains.
Trump’s proposed plans to create a strategic Bitcoin stockpile and appoint digital asset-friendly financial regulators have generated expectations of deregulation in the crypto industry. This potential shift has led Market Analyst Matt Simpson to suggest that Bitcoin prices could soar to $100,000. However, Simpson also cautioned that the market remains vulnerable to sudden downturns, which could negatively impact smaller investors ¹.
Trump’s broader agenda, encompassing tax cuts and reduced regulations on businesses, has additionally fueled a surge in other investments since his election win. With Republicans holding control of the executive and legislative branches, they are poised to advance Trump’s initiatives and send bills for his signature. Consequently, major stock indexes, the dollar, and US bonds have all experienced significant gains in recent days.
The implications of Trump’s presidency on the crypto market are profound. His promise to sack Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), who has led the SEC’s crackdown on the crypto industry, has sent a clear signal that the Trump administration will adopt a more crypto-friendly stance ¹. As the market continues to react to these developments, one thing is certain – the future of cryptocurrency has never looked brighter.
Referenece and Citations:
- Financialtimes – Bitcoin hit high as price edges
- CNBC – over 2point8 billion bet on bitcoin topping 90000 as it hits all time high
- BBC – Bitcoin tops record $80,000 as Trump sweep US Election
