Donald Trump’s win in the 2024 US presidential election has caused a big reaction in the cryptocurrency market. Bitcoin, the world’s most popular digital currency, went up almost 8% at the start of trading, breaking its old record of $75,000 set in March. This big jump has made both investors and experts wonder if Trump’s presidency will usher in a golden era for cryptocurrencies.
Trump used to criticise Bitcoin, calling it a “scam.” But now, as he prepares for another presidential campaign, he’s supporting cryptocurrency. He says, “We want the USA to be the crypto capital of the planet .” Trump’s support is already making a big difference. Bitcoin’s price has gone way up, setting new highs and surprising everyone. The cryptocurrency increased by almost 8% at the start of trading, going past $75,000 and breaking its old record from March.
The rally isn’t just about bitcoin; other digital currencies like ether, dogecoin, and stocks related to cryptocurrencies have also made big gains. Dogecoin, the favourite cryptocurrency of billionaire Elon Musk, has jumped by 18%. Coinbase, one of the biggest cryptocurrency trading platforms, has gone up by 17%, and online broker Robinhood Markets and MicroStrategy have also seen big increases.
Trump’s support for cryptocurrencies has raised expectations for a more friendly regulatory environment. People in the crypto industry are hopeful that his administration will make the legislative and regulatory changes that have been requested for a long time. The potential removal of Gary Gensler, the head of the Securities and Exchange Commission, who has been leading the US government’s efforts to control the crypto industry, is also viewed as a good step.
Even though Trump’s support has made the crypto market more exciting, experts remind us about the risks. “Investors should only use money they can afford to lose when trying out crypto,” says Susannah Streeter, who leads money and markets at Hargreaves Lansdown. As people keep guessing if bitcoin might reach $100,000, it’s important to remember that the cryptocurrency market can be unpredictable.
Despite the risks, the future of cryptocurrency seems more promising than ever. With Trump’s win, the crypto community is more energised, and investors are excited to see what the next four years will bring.
