The cryptocurrency market is having a major surge following Donald Trump’s victory in the 2024 U.S. presidential election. Here are five things to know.
Bitcoin has soared to new heights, surpassing $75,000, with other cryptocurrencies like ether and Dogecoin also experiencing impressive gains. Analysts predict that Bitcoin could soon hit $100,000, as investors anticipate a more favorable regulatory environment under Trump, CNBC reported.
Trump, who once expressed skepticism about digital currencies, has now fully embraced them. During his campaign, he has pledged to make the U.S. the “crypto capital of the world” and has expressed support for creating a national bitcoin reserve. On top of this, he launched World Liberty Financial, a crypto venture to tap into the decentralized finance space.
It seems, crypto insiders are optimistic about Trump’s policies, particularly his promise to replace Securities and Exchange Commission (SEC) Chair Gary Gensler. Gensler has been called out by the industry for his aggressive regulatory stance, which has led to numerous lawsuits against crypto firms, The Crypto Basic reported. The Trump administration, in contrast, is expected to adopt a “light touch” regulatory approach that could foster innovation in the digital currency space.
Charles Cascarilla, CEO of fin-tech company Paxos, believes Trump’s presidency could turn into “golden age” for crypto, according to Fortune.
However, some analysts caution that while the market is currently booming, cryptocurrencies remain highly volatile. Experts like Susannah Streeter of Hargreaves Lansdown advise investors to approach crypto with caution, as the market can be unpredictable.
“Investors should only dabble in crypto with money that they can be prepared to lose,” said Streeter, head of money and markets at Hargreaves Lansdown, told AP. “Because we’ve seen these wild swings in the past.”
With Bitcoin already up 77% this year and analysts predicting further gains, the market is now looking to see if Trump’s policies will deliver on their promise, potentially leading to a more crypto-friendly future.
Binance CEO Richard Teng hailed Donald Trump’s election as a “big win for crypto,” and like Cascarilla he predicts a “golden era” for the industry, Business Insider reported. Bitcoin, boosted by Trump’s crypto-friendly campaign, surged past $80,000, quadrupling its market cap in 2023 to a record $1.6 trillion.