Bitcon's New High After Donald Trump's Election Win: What's Driving the Surge?
News Publisher Nov 22, 2024 13:20
Bitcoin has recently reached a new high of $77,020 following Donald Trump's election victory. This has sparked interest across financial markets and is evidence that cryptocurrency is sensitive to political changes.
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Bitcoin has recently reached a new high of $77,020 following Donald Trump’s election victory. This has sparked interest across financial markets and is evidence that cryptocurrency is sensitive to political changes. The event has reinforced Bitcoin's reputation as a potential safe-haven asset even during economic uncertainty. The increase in Bitcoin's value brings attention not only to Bitcoin’s trading potential but also to the increasing popularity of depositing with Bitcoin as more platforms integrate cryptocurrency payment options.
According to Liliana Costache from Cardplayer, crypto casinos facilitate Bitcoin deposits and withdrawals. Although Bitcoin is the biggest cryptocurrency for online casinos and most crypto transactions, other popular cryptocurrencies include Ethereum, Litecoin, Bitcoin Cash, and Tether.
The Influence of Political Events on Bitcoin Price
The financial markets are filled with both excitement and uncertainty after Trump’s win. Investors are trying to figure out and predict the policy changes his administration may bring in areas such as taxation, fiscal spending, and economic regulatory changes. These moments of uncertainty are very beneficial for Bitcoin, as it attracts investors looking to keep their investments safe from market fluctuations. Investors often look at it as a hedge during periods of financial instability in traditional markets.
There is a notable trend of Bitcoin price hikes that is centered around U.S. presidential election periods. Before the 2016 presidential election, Bitcoin traded at around $600 and then started rising approximately 3 weeks before the elections. By the end of the year, it had risen to about $1,000 before doubling its price by the first week of January.
A similar trend occurred in the lead-up to the 2020 election when Bitcoin was trading around $11,000 and rose to a new high of $20,000 by December, reaching approximately $42,000 by early 2021. Just before the just-ended 2024 U.S. elections, Bitcoin showed a strong upward trend, reaching above $65,000 by October. This trend suggests that there are political events around elections that contribute to Bitcoin’s rising value.
The Influence of Economic Policy Expectations
The speculation around Trump’s potential economic policies has investors wondering whether the policies could weaken the dollar or increase inflation. Whatever the outcome may be, both scenarios are favorable to Bitcoin. Because Bitcoin has a limited supply, it is especially appealing during inflation.
The Future of Bitcoin
Bitcoin's future price remains uncertain, but cryptocurrency is indeed becoming a significant force in U.S. politics. The recent elections were supported by large amounts of crypto donations, which is an indication that there is a growing interest in digital assets among American voters.
Investors can expect more from their digital assets as the crypto industry has increased its influence on policy discussions. Wyoming Senator Cynthia Lummis introduced a bill aimed at setting clearer regulations for digital assets. The bill could create a more supportive framework for digital currencies, addressing issues like regulatory uncertainty. The future of digital assets in the U.S. lies in these regulatory developments.
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