Gold plated souvenir Bitcoin coins are arranged for a photograph in London on November 20, 2017. Justin Tallis/AFP/Getty Images
Bitcoin surged to a record $80,000 on Sunday, marking a significant milestone just days before the U.S. presidential election. The rise in value started gaining momentum over the past week, especially on election night when early results suggested Donald Trump’s victory. Bitcoin, the largest cryptocurrency, has been on a strong upward trajectory this year, outperforming the S&P 500’s notable 25.7% gain with an impressive 80% increase. As of Sunday morning, Bitcoin briefly touched the $80,000 mark, settling slightly below it by mid-morning.
The rapid growth in Bitcoin’s value comes as the crypto industry perceives Trump’s victory as favorable for the cryptocurrency market. Though Trump was previously skeptical about Bitcoin, even stating it was “based on thin air,” his stance has notably shifted in recent months. He now openly supports the crypto sector and has even invested in it. Trump, alongside his family, launched a new crypto enterprise, World Liberty Financial, in September. This move marks a significant shift in Trump’s perspective on digital assets, suggesting he sees the sector as both a lucrative and strategic industry.
Trump’s positive shift toward cryptocurrency is in stark contrast to the previous administration’s approach. Under President Biden, the regulatory landscape for crypto was much more restrictive. Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), frequently voiced concerns over crypto, calling it a breeding ground for fraud and scams. In 2021, Gensler pushed for stricter regulations on crypto companies, including taking legal action against high-profile players suspected of illegal securities trading. One notable case involved Sam Bankman-Fried, the CEO of FTX, a crypto exchange that faced regulatory scrutiny and legal action for alleged fraudulent practices.
Although the SEC initially hesitated to approve a Bitcoin exchange-traded fund (ETF), which would allow broader access to crypto investments, Gensler eventually sanctioned a limited version, enabling people to include Bitcoin in retirement portfolios. However, regulatory pressures still kept the crypto market cautious. Gensler’s attitude exemplified the Biden administration’s cautious stance on cryptocurrency, setting a stark contrast to Trump’s current enthusiasm.
In August, Trump suggested that cryptocurrencies could play a vital role in America’s economic future. He stated that he wanted the U.S. to become a hub for mining, minting, and producing cryptocurrencies, hinting at a potential national strategy for crypto similar to the country’s strategic oil reserves. Trump’s administration is even considering a national Bitcoin stockpile, which would serve as a financial reserve to support the nation’s economy. This approach would make the U.S. one of the first countries to formally recognize and invest in cryptocurrency as part of its financial infrastructure.
Elon Musk, a prominent crypto advocate and one of Trump’s vocal supporters, has also played a role in promoting cryptocurrency. Known for his influence in the crypto world, Musk has regularly supported Dogecoin, a popular meme-based cryptocurrency. Musk’s public backing helped Dogecoin rise by over 20% last week, reflecting how market sentiment often follows endorsements from influential figures.
The evolving stance on cryptocurrency from prominent figures like Trump and Musk has emboldened investors. As confidence grows, more people are willing to invest in the digital currency space, potentially seeing it as a hedge against traditional financial markets and regulatory pressures. This bullish environment may also encourage institutional investors to look into cryptocurrencies, further boosting Bitcoin’s price and the crypto market as a whole.
Bitcoin’s unprecedented rise to $80,000 highlights a pivotal moment for cryptocurrency in the U.S., influenced by changing political dynamics and powerful advocates. As the world watches, Trump’s support for crypto could signal a new era for digital currencies, transforming them from niche investments to a central part of the American financial landscape. The crypto community is optimistic that Trump’s policies could pave the way for a more inclusive and growth-friendly regulatory framework, which could sustain Bitcoin’s impressive growth well into the future.
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