Bitcoin surges to all‑time high amid Trump's crypto ambitions
A historical milestone is unfolding for Bitcoin. The most popular cryptocurrency's value has reached nearly £74,000, surpassing its peak during the COVID-19 pandemic. The bitcoin rate has increased by 32% since Donald Trump won the presidential election in the USA.
Bitcoin is growing rapidly. On 10th November, at around 1 PM GMT, the cryptocurrency's value broke the £66,500 barrier, and just two days later, it approached nearly £74,000. On Tuesday, 12th November, the bitcoin rate reached £73,980.
The increased demand for this cryptocurrency is attributed to Donald Trump, the president-elect, who during his election campaign, promised to make the United States the "crypto capital of the world."
Trump has promised more favourable regulations regarding cryptocurrencies. The Republican Party is tightening its control over Congress, which increases the chances of passing Trump's proposed solutions. Other promises include creating strategic reserves of bitcoin and supporting domestic token mining to establish the USA as the cryptocurrency capital of the planet.
Bloomberg notes that following Trump's victory, the overall value of digital assets has risen to £2.55 trillion.
Bitcoin in "beast mode"
Chris Weston, head of research at Pepperstone Group, a company offering forex trading services, assessed that bitcoin is in "beast mode." He mentioned that investors are now pondering whether to jump onto this speeding train or to wait for slight declines.
According to some analysts, in January, before Donald Trump's inauguration, bitcoin might reach a value of £82,600. Besides the Republicans' victory, the rate increase is also supported by the Federal Reserve's decision to cut interest rates by 0.25%. According to Thursday's Fed decision, interest rates in the US will now range from 4.5% to 4.75%.
However, the recent upsurge in the most popular cryptocurrency indicates that surpassing the £82,600 threshold is possible even this year. "Bitcoin has more than doubled so far in 2024, helped by robust demand for dedicated US exchange-traded funds and interest-rate cuts by the Federal Reserve. The rise in the token, which also scaled fresh records after Tuesday’s US vote, exceeds the returns from investments such as stocks and gold. The ETFs, powered by BlackRock Inc.’s $35 billion iShares Bitcoin Trust, posted a record daily net inflow of almost $1.4 billion on Thursday," Bloomberg points out.
The agency notes that cryptocurrency companies have participated in the election campaign and supported candidates who are expected to favour the industry. Donald Trump was a major critic of Bitcoin in the past, but he has since changed his stance.
In July 2019, he wrote on platform X that he was not a fan of cryptocurrencies as they are not money, and their value is very volatile and "based on nothing." However, in 2024, a shift occurred. During the election campaign, Trump began ingratiating himself with the crypto industry with controversial promises.
