Donald Trump positioned himself as "crypto-friendly" throughout the election campaign and promised to turn the US into the "global center for bitcoin and cryptocurrencies."
Thursday saw Bitcoin reach $98,000 for the first time, maintaining its upward trend since the outcome of the US presidential election. In just two weeks, the value of the cryptocurrency has increased by almost 40%, according to the Associated Press news agency.As of 7:30 p.m. IST on Thursday, Bitcoin was trading at $97,594.85, according to CoinDesk. As investors look to profit from anticipated profits from a "crypto-friendly" Donald Trump rather than the departing Biden government, cryptocurrencies and related assets have skyrocketed.
Why is the value of Bitcoin so high?
Once Trump takes office in January 2025, it is anticipated that his positive views on cryptocurrencies would contribute to their growth.
Trump called cryptocurrencies a “scam” during his first administration. During his first tenure, he reduced corporation taxes, which increased market liquidity and encouraged more investments in high-growth assets like cryptocurrencies.
Donald Trump positioned himself as a “crypto-friendly” candidate during the polling campaign, even promising to turn the US into the “bitcoin and cryptocurrency capital of the world”.
He reportedly considered setting up a bitcoin "strategic reserve." Trump was persuaded to start his own business, World Liberty Financial, with family members to trade cryptocurrencies due to the skyrocketing value of bitcoin.
Trump pledged to prevent the US federal government from selling off its cryptocurrency holdings. Along with consistently demanding greater regulation, he also pledged to remove Gary Gensler, the chair of the Securities and Exchange Commission, who has been spearheading the US government's campaign on the cryptocurrency business.
What dangers could a skyrocketing Bitcoin pose?
Future market conditions will determine long-term price behavior, analysts told AP, and they cautioned against losing money as soon as they make it.
The decline of Bitcoin during the COVID-19 outbreak is a recent example. Bitcoin was worth slightly more than $5,000 in the early days of the outbreak. By November 2021, when demand for technological assets peaked, its price had risen to around $69,000.
Due in significant part to an aggressive sequence of rate hikes by the Federal Reserve to combat inflation, the value of Bitcoin plummeted to below $17,000 in late 2022. The crash severely damaged trust in Bitcoin and cryptocurrency in general.
Trump pledged to prevent the US federal government from selling off its cryptocurrency holdings. Along with consistently demanding greater regulation, he also pledged to remove Gary Gensler, the chair of the Securities and Exchange Commission, who has been spearheading the US government's campaign on the cryptocurrency business.
What dangers could a skyrocketing Bitcoin pose?
Future market conditions will determine long-term price behavior, analysts told AP, and they cautioned against losing money as soon as they make it.
The decline of Bitcoin during the COVID-19 outbreak is a recent example. Bitcoin was worth slightly more than $5,000 in the early days of the outbreak. By November 2021, when demand for technological assets peaked, its price had risen to around $69,000.
Due in significant part to an aggressive sequence of rate hikes by the Federal Reserve to combat inflation, the value of Bitcoin plummeted to below $17,000 in late 2022. The crash severely damaged trust in Bitcoin and cryptocurrency in general.
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