Bitcoin Approaches $80,000 amid Trump’s Support for Digital Assets
Bitcoin surged nearly 90 percent in 2024, approaching $80,000, due in part to President-elect Donald Trump’s favorable view of digital assets. The cryptocurrency gained 4.3 percent over the weekend, alongside other tokens like Cardano and Dogecoin, spurred by anticipated supportive legislation. This juxtaposes sharply with previous regulatory scrutiny under President Biden.
Bitcoin has reached unprecedented heights close to $80,000, driven by President-elect Donald Trump’s favorable stance towards digital assets and the potential presence of pro-cryptocurrency legislators in Congress. Over the weekend, the cryptocurrency surged 4.3 percent, attaining $79,771, according to Bloomberg reports, with other tokens like Cardano and Dogecoin witnessing similar climbs. Trump’s election campaign promised significant attention to the digital asset industry, including plans for a Bitcoin reserve and the appointment of supportive regulators. In the wake of Trump’s electoral success, notable market reactions have ensued, highlighting the expectation of continuing crypto market growth under his anticipated administration. Le Shi, Managing Director at Auros, remarked, “With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that’s what we’re seeing now.” Bitcoin’s value has surged nearly 90 percent in 2024, driven by substantial demand for U.S. exchange-traded funds (ETFs) and recent interest rate reductions by the Federal Reserve. The iShares Bitcoin Trust of BlackRock Inc. has attracted an impressive net inflow of $1.4 billion, marking a peak in trading volume following Trump’s win. This burgeoning interest in Bitcoin and ETFs contrasts sharply with the regulatory approach of the current administration under President Joe Biden, who has been perceived as more restrictive toward digital assets. Past measures enforced by the Securities and Exchange Commission, especially following the collapse of the FTX exchange, have tightened regulations within the crypto sector. Moreover, digital asset companies have invested heavily to support candidates advocating for a favorable regulatory environment. Noelle Acheson, author of the Crypto Is Macro Now newsletter, noted, “Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely.” As the cryptocurrency sector evolves, upcoming legislative shifts could reshape the landscape significantly, advocating for a more accommodating regulatory framework in the United States.
The cryptocurrency market has witnessed heightened interest and activity, particularly in light of political developments in the United States. With Donald Trump’s re-election campaign positioning him as supportive of digital assets, many traders and investors have responded positively, contributing to Bitcoin’s price surge. The backdrop of regulatory changes, notably the Securities and Exchange Commission’s actions and its impact on market participants, provides context for the current dynamics within the cryptocurrency landscape.
In summary, Bitcoin’s remarkable ascent to nearly $80,000 can be largely attributed to the perceived supportive stance of President-elect Donald Trump towards cryptocurrencies and the anticipated legislative changes that accompany his administration. With significant inflows into Bitcoin ETFs and a stark contrast to the previous administration’s regulatory environment, the future of the crypto market appears optimistic, contingent on forthcoming policy shifts in Congress.
Original Source: www.livemint.com
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