Bitcoin has reached new highs following Donald Trump's election victory, where the exchange rate has passed $80,000 for the first time., and getting near 90.000 USD. The sharp rise is primarily due to expectations of a more crypto-friendly policy under the upcoming Trump administration.
We analyze the possible causes and effects on crypto markets of Trump's election victory, regardless of his other political agendas.
The price rise indicates that Bitcoin set a new record of 89,993.69 USD on Tuesday, November 12, following a daily increase since the election. The previous record level of $73,835 dates from March 1, 2024, driven by the approval of the Bitcoin Spot ETFs in January 2024 and a growing interest from institutional investors. Since then, the Bitcoin exchange rate has in many ways fluctuated between 54,000 and 71,000, and the week in which the United States elections took place started at 68,000. Thus, the rate increase after Trump's election victory has thus far been around 20 percent.
In his previous presidency, Donald Trump was strongly critical of crypto and Bitcoin. But in 2024, he made a U-turn, embracing crypto and pledging to make the United States the “Bitcoin capital of the planet.” Trump's new crypto-positive policy became extra visible when he gave a keynote at the “Bitcoin 2024” conference in late July this year. The turnaround created optimism among investors and crypto enthusiasts.
Despite a more cross-party support for crypto in the United States Congress in May of this year, the majority of crypto enthusiasts continued to put their trust in Trump. Venture capitalist and crypto investor Anthony Scaramucci, who himself endorsed Kamala Harris as a presidential candidate, then also places part of the blame for the Democrats' electoral defeat on SEC chief Gary Gensler and Senator Elizabeth Warren, both of whom have run a kind of war train against crypto through the Biden government.
One of the main drivers of the rate rise is expectations of a more beneficial regulation of the crypto industry. Trump has vowed, among other things, to fire SEC chief Gary Gensler. This signals a potential “hands-off” approach by the government, following the many controversial and lengthy litigation to which Gensler has contributed, driven by his interpretation of the Securities Act of 1933 that crypto is, in effect, a security.
Cryptocurrency has played a surprisingly important role in the election campaign. With an estimated 50 million American bitcoin owners, crypto has become a significant political factor. Trump's active courtship of this voter group has strengthened crypto's position in the political landscape. According to a report by Public Citizen, nearly half of the donations to the US political parties have come from the crypto industry, and most of that money has gone to Republican candidates.
Trump's positive stance on crypto has created a wave of optimism in the market. Many analysts now expect Bitcoin to reach $100,000 before the end of the year, driven by Trump's victory and expectations of a more crypto-friendly policy.
This could also have far-reaching consequences beyond the borders of the United States. It is speculated that Bitcoin may gain a strengthened position as a “neutral international reserve currency” in light of potential geopolitical tensions under Trump.
While it remains to be seen how Trump's policies will play out in practice, his election victory has created a wave of optimism in the crypto market. Investors and enthusiasts are looking forward to a period of potential growth and increased adoption of cryptocurrency in the United States.
Bitcoin has reached new highs following Donald Trump's election victory, where the exchange rate has passed $80,000 for the first time., and getting near 90.000 USD. The sharp rise is primarily due to expectations of a more crypto-friendly policy under the upcoming Trump administration.
We analyze the possible causes and effects on crypto markets of Trump's election victory, regardless of his other political agendas.
The price rise indicates that Bitcoin set a new record of 89,993.69 USD on Tuesday, November 12, following a daily increase since the election. The previous record level of $73,835 dates from March 1, 2024, driven by the approval of the Bitcoin Spot ETFs in January 2024 and a growing interest from institutional investors. Since then, the Bitcoin exchange rate has in many ways fluctuated between 54,000 and 71,000, and the week in which the United States elections took place started at 68,000. Thus, the rate increase after Trump's election victory has thus far been around 20 percent.
In his previous presidency, Donald Trump was strongly critical of crypto and Bitcoin. But in 2024, he made a U-turn, embracing crypto and pledging to make the United States the “Bitcoin capital of the planet.” Trump's new crypto-positive policy became extra visible when he gave a keynote at the “Bitcoin 2024” conference in late July this year. The turnaround created optimism among investors and crypto enthusiasts.
Despite a more cross-party support for crypto in the United States Congress in May of this year, the majority of crypto enthusiasts continued to put their trust in Trump. Venture capitalist and crypto investor Anthony Scaramucci, who himself endorsed Kamala Harris as a presidential candidate, then also places part of the blame for the Democrats' electoral defeat on SEC chief Gary Gensler and Senator Elizabeth Warren, both of whom have run a kind of war train against crypto through the Biden government.
One of the main drivers of the rate rise is expectations of a more beneficial regulation of the crypto industry. Trump has vowed, among other things, to fire SEC chief Gary Gensler. This signals a potential “hands-off” approach by the government, following the many controversial and lengthy litigation to which Gensler has contributed, driven by his interpretation of the Securities Act of 1933 that crypto is, in effect, a security.
Cryptocurrency has played a surprisingly important role in the election campaign. With an estimated 50 million American bitcoin owners, crypto has become a significant political factor. Trump's active courtship of this voter group has strengthened crypto's position in the political landscape. According to a report by Public Citizen, nearly half of the donations to the US political parties have come from the crypto industry, and most of that money has gone to Republican candidates.
Trump's positive stance on crypto has created a wave of optimism in the market. Many analysts now expect Bitcoin to reach $100,000 before the end of the year, driven by Trump's victory and expectations of a more crypto-friendly policy.
This could also have far-reaching consequences beyond the borders of the United States. It is speculated that Bitcoin may gain a strengthened position as a “neutral international reserve currency” in light of potential geopolitical tensions under Trump.
While it remains to be seen how Trump's policies will play out in practice, his election victory has created a wave of optimism in the crypto market. Investors and enthusiasts are looking forward to a period of potential growth and increased adoption of cryptocurrency in the United States.
