Following Donald Trump’s massive victory in the US presidential election, the price of Bitcoin has soared beyond $80,000 for the first time in history. This achievement comes as Republicans near total congressional power, having captured the presidency and a Senate majority. Throughout his campaign, Trump claimed to make the United States “the crypto capital of the planet.” Furthermore, Trump’s cryptocurrency deregulation could boost bitcoin prices but bring market volatility.
This year, the world’s biggest cryptocurrency has increased by 80%. Notable increases are also seen in other cryptocurrencies like dogecoin, which billionaire Elon Musk backs. Hopes for liberalization in the cryptocurrency sector have been bolstered by Trump’s pre-election pledges to create a strategic bitcoin stockpile and designate regulators who are accepting of digital assets.
Trump has announced plans to remove Gary Gensler, the Securities and Exchange Commission (SEC) chair. Gensler, appointed by President Biden in 2021, has been a critical figure in the agency’s strict regulatory approach toward cryptocurrencies. Market expert Matt Simpson from stoneX Financial believes that the crypto sector could see substantial growth if Trump pushes for deregulation. Simpson predicts that Bitcoin’s price might even hit $100,000 if Trump follows his crypto-friendly promise. However, he cautioned that market unpredicted selloffs could still pose risks.
Trump’s broader economic agenda also focuses on reducing business regulations and implementing tax cuts, which has excited investors across various sectors. With Republicans potentially controlling the executive and legislative branches, advancing Trump’s policy initiatives may become more accessible.
Due to Trump’s Cryptocurrency deregulation, the surge has already begun, but industry insiders remain cautiously hopeful. While Bitcoin’s meteoric rise creates new opportunities, potential market swings challenge investors. The anticipated regulatory shifts under the incoming administration could profoundly impact the crypto space, offering risks and rewards.
