Tuesday, November 12, 2024

Bitcoin Reaches Record High as President-Elect Trump Signals Pro-Crypto Stance

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In an expected leap, Bitcoin has surged to a record high of nearly $80,000, reflecting renewed enthusiasm in the digital asset space. This remarkable ascent comes on the heels of US President-elect Donald Trump’s expressed support for cryptocurrency, alongside the potential for a Congress filled with pro-crypto lawmakers.

On Sunday, Bitcoin soared by 4.3%, reaching $79,771, with a peak near $79,000 at 2:05 PM in Singapore, as reported by Bloomberg. This rally has also buoyed smaller tokens, including Cardano and Dogecoin, which saw significant gains.

Throughout his campaign, Donald Trump pledged to prioritize the digital asset industry in the US, promising initiatives such as establishing a national Bitcoin reserve and appointing regulators who understand the crypto landscape. Last Tuesday, Trump clinched a decisive victory, surpassing expectations and setting the stage for potential legislative shifts in the cryptocurrency sector.

“As the dust from Trump’s victory settles, it’s clear we’re witnessing a run-up due to his perceived pro-crypto stance,” noted Le Shi, Managing Director of Hong Kong’s market-making firm Auros, reflecting the market’s optimism.

In 2024, Bitcoin saw an astonishing 90% increase, driven by the robust demand for US exchange-traded funds (ETFs) and key rate cuts by the Federal Reserve. This performance has outshone traditional investments like stocks and gold, highlighting the cryptocurrency’s growing allure.

On Thursday, the iShares Bitcoin Trust by BlackRock Inc., valued at $35 billion, reported a net inflow of $1.4 billion in a single day. The ETF’s trading volume hit an all-time high, underscoring the market’s reaction to Trump’s electoral win.

Trump’s pro-crypto stance marks a stark contrast to President Joe Biden’s administration, which took a more cautious approach towards digital assets. Under Biden, the Securities & Exchange Commission (SEC), led by Chair Gary Gensler, intensified scrutiny of the sector, particularly following the collapse of Sam Bankman-Fried’s FTX exchange.

During the election, digital asset firms invested heavily in promoting candidates favorable to the industry, foreseeing a shift in regulatory landscapes. “Trump has promised supportive regulation, and with Republican control of both the House and Senate, the chances of passing crypto-friendly legislation have increased significantly,” stated Noelle Acheson, author of the *Crypto Is Macro Now* newsletter.

As the crypto world watches closely, the prospect of a Trump-led administration brings a tide of optimism, potentially heralding a new era of growth and innovation in digital finance. However, with great enthusiasm comes the need for balanced oversight, ensuring that the burgeoning industry evolves with integrity and security.

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