Trump's Return to Power Promises Easing of Cryptocurrency Regulations
Bitcoin surpassed $80,000 for the first time ever, fueled by the effect of Donald Trump’s election as President of the United States.
According to Coinbase on the 10th (local time), as of 4:32 PM Eastern Time, Bitcoin was trading at $79,620, up 4.25% from the previous trading day. During the session, Bitcoin briefly rose 4.7% to $80,092, surpassing $80,000 for the first time in history.
Bitcoin broke through the $75,000 mark for the first time on the 6th, when Trump’s victory was confirmed, setting a new seven-month high. It then surpassed $80,000 again just four days later, setting a new all-time high.
Other cryptocurrencies such as Ethereum rose 2.25%, and Solana increased by 3.98%.
Cryptocurrencies, including Bitcoin, are representative assets of the "Trump Trade," where money flows into investments expected to benefit from Trump’s victory. Earlier, during his candidacy, Trump dismissed Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who had taken a negative stance on cryptocurrencies, and announced plans to make the United States the capital of cryptocurrency, signaling a crypto-friendly policy.
Before the election, Wall Street predicted that if Trump won, Bitcoin’s price would exceed $80,000 by the end of the year. On the 29th of last month, a Bloomberg Market Live Pulse survey of 350 investors and economists forecasted that Bitcoin would reach $80,000 by year-end if Trump were elected, and $65,000 if Kamala Harris were elected. However, Bitcoin surpassed $80,000 just four days after Trump’s victory was confirmed.
Alex Sohn, Chief Research Officer at cryptocurrency investment firm Galaxy Digital, said, "Cryptocurrency is entering a golden age," and analyzed, "The pro-crypto stance of Trump, his team, and donors increases the likelihood that Trump will fulfill the promises he made to the industry." He added, "Over the next two years, Bitcoin and other digital assets will trade at prices much higher than the current all-time highs," and predicted, "The once oppressive headwinds in the world’s largest capital markets will now turn into tailwinds."
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