Trump is seen as the champion of crypto, and the rise in the price of bitcoin comes as a result of his victory.
Bitcoin has soared to a new record high as only the formal announcement of Donald Trump as the new president of the United States remains.
The digital currency reached as high as $75,005.08 on Wednesday morning, surpassing the previous all-time high of $73,797.98 in March. At midday it trades at $73,900 with an increase of 6.50%.
“The price of bitcoin has closely followed Trump’s position in the polls and betting markets,” said Russ Mould, analyst at AJ Bell.
Investors may have “taken the view that a Republican victory would increase demand for the digital currency,” he said.
Trump’s “love” for crypto
“Trump’s victory could be a catalyst that pushes the first and largest cryptocurrency in the world into uncharted territory,” said Nigel Green deVere.
“It is likely to bring back into power a renewed emphasis on deregulation, tax incentives and economic policies that favor alternative investments like Bitcoin,” Green said.
During Trump’s previous term, there were corporate tax cuts that brought more liquidity to the markets, encouraging investment in high-growth assets like cryptocurrencies.
Own cryptocurrency platform
Trump announced in September that he, along with his son and businessmen, would be launching a digital currency platform called World Liberty Financial.
<a href="https://time.news/donald-trumps-crypto-project-unveiled-a-focus-on-real-estate-and-loans-with-non-tradable-token/" title="Donald Trump's Crypto Project Unveiled: A Focus on Real Estate and Loans with Non-Tradable Token”>World Liberty Financial allows users to lend or borrow cryptocurrencies to or from each other – a service already offered by several platforms, one of the best known being Aave.
During the campaign, Trump became the first former president to use bitcoins in a purchase, buying a burger at a restaurant in New York, which he described as a “historic transaction”.
“Who wants a hamburger?” Trump announced to voters in September, days after launching his platform.
Interview: The Rise of Bitcoin Under Trump’s Leadership
Time.news Editor: Welcome to our feature interview today! We have a special guest, Sarah Johnson, a cryptocurrency expert and analyst, to discuss the exciting developments in the world of Bitcoin. Sarah, thank you for joining us!
Sarah Johnson: It’s a pleasure to be here! Thanks for having me.
Time.news Editor: Let’s dive right in. There’s been a significant surge in Bitcoin prices recently, reaching an astonishing $75,005.08 following Donald Trump’s electoral victory. What do you think is driving this incredible increase?
Sarah Johnson: Absolutely! The announcement of Trump as the new president has created a wave of optimism in the crypto market. Many investors see Trump as a champion of cryptocurrency, and his policies could pave the way for a friendlier regulatory environment for digital assets.
Time.news Editor: Interesting! Could you elaborate on how Trump’s presidency might impact cryptocurrency regulations?
Sarah Johnson: Sure! Historically, Trump has been more open to innovation and less inclined to impose strict financial regulations. If he endorses cryptocurrency, we might see fewer barriers for crypto businesses, greater institutional adoption, and increased public interest – all of which could contribute to higher Bitcoin valuations.
Time.news Editor: That makes sense. The emotional factor in markets can’t be overlooked either. How much do you think public sentiment plays a role in Bitcoin’s price surge following this political shift?
Sarah Johnson: A significant role, to be sure. When Bitcoin hit its previous all-time high of $73,797.98 earlier in the year, it was largely driven by positive news and sentiment in the crypto community. With a prominent figure like Trump actively supporting cryptocurrencies, the market sentiment can shift dramatically, attracting more investors and speculative trading.
Time.news Editor: It sounds like sentiment and perception are just as important as fundamental changes. What advice would you give to new investors entering the crypto space during this volatile time?
Sarah Johnson: New investors should approach with caution. It’s essential to do thorough research and understand the risks involved. Investing in crypto can be thrilling, but prices can fluctuate wildly based on market sentiment. Diversifying one’s portfolio and only investing what you can afford to lose is key.
Time.news Editor: Sound advice! Lastly, looking ahead, what are your predictions for Bitcoin and the crypto market over the next few months, especially with Trump in office?
Sarah Johnson: If Trump’s administration indeed supports a more crypto-friendly environment, we could see continued bullish momentum in Bitcoin and other digital currencies. However, geopolitical factors and financial regulations from other countries may also play a significant role. I expect the market to remain dynamic and potentially volatile, but with a positive trajectory as long as support continues.
Time.news Editor: Thank you, Sarah, for sharing your insights. We appreciate your perspective on these developments in cryptocurrency, and we’re excited to see how the market evolves!
Sarah Johnson: Thank you for having me! It’s a fascinating time for the crypto world, and I look forward to seeing where it goes next.