The price of bitcoin rose to $94,839, extending a rally that has seen its value rise nearly 40% since Donald Trump’s re-election victory.
The digital currency, worth $7,333 five years ago, has benefited from optimism surrounding a potentially crypto-friendly regulatory environment during Trump’s second term.
Once skeptical of cryptocurrencies, Trump promised to turn the US into the “crypto capital of the planet” and establish a “strategic reserve” for bitcoin. His campaign is actively accepting cryptocurrency donations, and he joined crypto enthusiasts at a bitcoin conference in July. Trump also launched World Liberty Financial, a family-owned business specializing in cryptocurrency trading.
Trump’s victory prompted Republicans to invite crypto leaders to Washington to discuss a new crypto policy framework. Industry executives hope that Trump will follow through on promises to make legislative and regulatory changes, including his commitment to remove Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who led the government’s crackdown on cryptocurrencies.
Stéphane Ouellette, CEO of crypto trading company FRNT Financial, commented: “Trump’s apparent interest in advancing crypto personally has contributed to the hope that crypto will be a priority when Trump takes office. “
US bitcoin exchange-traded products have also seen growth, with $4.2 billion inflows since Trump’s victory—comprising 15% of total revenue since the products were introduced to US exchanges earlier this year.
Chris Weston, head of research at Australian retailer Pepperstone, noted the potential for further growth: “Another kick to the upside should bring a renewed rush from those interested in strong buying.”
The crypto community is very optimistic about Trump’s pro-crypto stance, seeing it as an opportunity to strengthen the US as a global hub for digital currencies. However, critics warn that bitcoin’s volatile and speculative nature could pose risks to both investors and broader economic stability.
Bitcoin, created in 2008 by the mysterious Satoshi Nakamoto, has no physical form and was originally worth nothing. Over the years, its availability and popularity have increased, although its price remains highly variable. With Trump’s endorsement and promises of a supportive policy environment, cryptocurrency has gained new momentum.
