Why Bitcoin Is Going Up: “Trump Trade” In Action?
Mustafa Mulla21 Nov 20242 min read
Bitcoin has just hit a new all-time high, reaching $97,858, pushing its market value close to $2 trillion. This milestone comes in the wake of Donald Trump’s victory in the U.S. presidential election, which has had a major impact on Bitcoin’s price. Many are calling it the “Trump trade,” due to the positive effects his win has had on the cryptocurrency.
Here’s all you must know.
The Trump Effect
Since Trump’s election win, Bitcoin has seen an impressive surge. As soon as the results became clear, Bitcoin quickly surpassed its previous all-time high of $73,737 from March. The price jump has been remarkable, with Bitcoin climbing 35% in just a few weeks.
Several factors are contributing to Bitcoin’s rise, including a government that is more friendly toward cryptocurrencies and new interest rate cuts by the Federal Reserve. These changes have boosted confidence among traders, sparking a wider market rally.
The boost has extended to everything from stocks to bonds, all seeing gains since Trump’s win.
Trump’s Team Could Benefit Crypto
The excitement around Bitcoin isn’t just due to Trump’s victory. His team is also considering blockchain expert Teresa Goody Guillén for the role of SEC chair, which could be a big win for the crypto world.
Additionally, Fox Business journalist Eleanor Terrett has reported that Brian Brooks, a crypto supporter, might also be in line for the position. Either of these choices could signal a more crypto-friendly regulatory environment.
Plus, there are rumors that Trump’s media company, Trump Media & Technology Group, is in talks to buy Bakkt, a popular cryptocurrency exchange. This has sparked even more interest in Bitcoin, making people feel more confident about its future.
Big Investors Jump In
Another reason for Bitcoin’s price jump is the increasing interest from big investors. Just recently, BlackRock launched Bitcoin options trading through its iShares Bitcoin Trust (IBIT). Coinpedia News reported that on its very first day, the IBIT saw an incredible $1.9 billion in trading, setting a new record for Bitcoin ETFs.
With Trump’s win, the possibility of crypto-friendly policies, and more institutional investors entering the market, Bitcoin’s future looks more promising than ever. The next few months will be exciting!
