The price of bitcoin has risen above $80,000 (£62,000) for the first time ever after Donald Trump’s decisive victory in the US election last week. This comes as the Republicans are edging closer to overall control of Congress.
Published Date: November 11, 2024
Pledge to Make US “Crypto Capital”
On the campaign trail, President-elect Trump pledged to make the US “the crypto capital of the planet”. The value of the world’s biggest cryptocurrency has now risen by more than 80% this year. Other cryptocurrencies, including dogecoin, which has been promoted by high-profile Trump supporter Elon Musk, are also making gains.
Expectations for Crypto Industry
In the run-up to the election, Trump said he would create a strategic bitcoin stockpile and appoint digital asset-friendly financial regulators – spurring expectations that he would strip back regulations on the crypto industry. Trump has said one of his first actions as president would be to sack the current chair of the Securities and Exchange Commission (SEC), Gary Gensler.
Bitcoin Value Rises by 80% This Year
The value of the world’s biggest cryptocurrency has now risen by more than 80% this year. Other cryptocurrencies, including dogecoin – which has been promoted by high-profile Trump supporter Elon Musk – are also making gains.
Trump’s Plans for Crypto Industry
In the run-up to the election, Trump said he would create a strategic bitcoin stockpile and appoint digital asset-friendly financial regulators. This has led to expectations that he would deregulate the crypto industry.
SEC Crackdown Under Biden
However, Mr Gensler, who was appointed by Joe Biden in 2021, has led the SEC’s crackdown on the crypto industry. If Trump does deregulate crypto, it could be bullish for the sector, with market analyst Matt Simpson predicting that bitcoin prices could jump to as high as $100,000.
Republican Control and Economic Gains
With Republicans in control of the executive and potentially both the legislative branches of the government, they will be able to advance Trump’s ideas through each chamber and send those bills for him to sign into law. This has driven a surge in other investments since he won the election, with major stock indexes, the dollar, and US bonds all making gains in recent days.
Market Analyst’s View
Market analyst Matt Simpson told the BBC that if the Trump administration does deregulate crypto, it’s hard to see how it is not bullish for the sector. He added that such a move could lead bitcoin prices to jump to as high as $100,000. However, he also noted that bitcoin is still vulnerable to nasty selloffs along the way.
Broader Agenda and Market Gains
Trump’s broader agenda, which includes cutting taxes and reducing regulations on businesses, has also driven a surge in other investments since he won the election. Major stock indexes, the dollar, and US bonds have all made gains in recent days.
Published Date: 2024/11/11
The price of bitcoin has risen above $80,000 (£62,000) for the first time ever, after Donald Trump’s decisive victory in the US election last week. This comes as the Republicans are edging closer to overall control of Congress after having already secured the presidency and a majority in the Senate.
Trump’s Pledge to Make US “Crypto Capital”
On the campaign trail, president-elect Trump pledged to make the US “the crypto capital of the planet.” This has spurred expectations that he would strip back regulations on the crypto industry.
