Nov 10, 2024 09:47 PM IST
Donald Trump projected himself as a pro-cryptocurrency candidate and even pledged to make the US the “bitcoin and cryptocurrency capital of the world”.
The value of Bitcoin soared to a new high as the digital currency surged past $80,000 for the first time in its history on Sunday, news agency AFP reported.
The digital currency’s value surged to $75,000 on Wednesday, breaching its previous all-time peak of $73,797.98 achieved in March 2024.
“The odds that Bitcoin and crypto will become a significantly larger asset class have risen markedly,” said Charles Morris, an analyst at investment company ByteTree.
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The odds analysts refer to is the recent victory of Donald Trump in the US presidential elections. Trump’s favourable stance towards cryptocurrencies is expected to favour its growth once he assumes office in January 2025.
“We shouldn’t expect this bullish trend to be interrupted for a long time -about a year. The next level for me is $100,000,” said Stephane Ifrah, of French crypto asset management company Coinhouse.
During his first term, Trump referred to cryptocurrencies as a “scam.” Corporate taxes during his first term brought more liquidity into the markets and drove more investments into high-growth assets such as cryptocurrency.
Since then, the Republican has radically changed his stance and even launched his own cryptocurrency platform. In September, Trump announced that he and his sons and entrepreneurs would launch a digital currency platform named World Liberty Financial.
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During his recent presidential campaign, Trump managed to project himself as a pro-cryptocurrency candidate and even pledged to make the US the “bitcoin and cryptocurrency capital of the world.” In July, Trump promised to ensure the US federal government never sells its bitcoin holdings.
During the campaign, Trump apparently became the first former president to use Bitcoin to make a purchase, buying burgers at a New York City restaurant, which hailed it as a “historic transaction.”
Bitcoin has added almost 91% of its value in 2024. Robust demand for dedicated US exchange-traded funds and the Federal Reserve’s interest rate cuts helped the surge in value. With therecent surge, returns from Bitcoin have exceeded the returns on investments such as stocks and gold.
(With agency inputs)
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