Bitcoin surpassed $80,000 for the first time, driven by US President-elect Donald Trump’s embrace of digital assets, and the prospect of a Congress with pro-crypto lawmakers.
The cryptocurrency rose 4.7% to an unprecedented $80,092 this Sunday, after the Trump campaign promised to put the US at the center of the digital asset industry.
Trump’s reinforced victory, with the Republican Party in control of the Senate and on the verge of gaining a majority in the House of Representatives, gave more impetus to the crypto sector.
“It was only a matter of time before there was some kind of boom, given the perception that Trump was pro-crypto, and that’s what we’re seeing now,” says Le Shi, executive director at trading firm Auros, Bloomberg.
Since the beginning of the year, Bitcoin is up about 91%, helped by strong demand for US funds and interest rate cuts by the Federal Reserve.
The appreciation of the largest digital token, which broke new records after the US vote, exceeds the returns on investments such as stocks and gold.
Trump’s position contrasts with a certain crackdown on digital assets by the Joe Biden-led administration.
Securities & Exchange Commission (SEC) Chairman Gary Gensler has repeatedly labeled the industry as one rife with fraud and misconduct.
A strong devaluation of these assets in 2022 and several falls in the sector, namely the fraudulent bankruptcy of FTX Sam Bankman-Fried, served as arguments for the North American stock exchange regulator.
In the presidential race, companies and managers in the field of digital assets provided substantial funding to the US election campaign to support candidates considered favorable to their interests.
Interview between Time.news Editor and Cryptocurrency Expert
Time.news Editor: Good day, everyone! Welcome to another edition of our exclusive interview series. Today, we have the honor of speaking with Dr. Lisa Tran, a leading expert in cryptocurrency and blockchain technology. Dr. Tran, thank you for joining us!
Dr. Lisa Tran: It’s my pleasure! I’m excited to discuss the current state of cryptocurrency, particularly Bitcoin.
Time.news Editor: Just yesterday, Bitcoin surged past the $80,000 mark for the first time. What do you attribute this significant increase to?
Dr. Lisa Tran: There are several factors at play, but one of the most notable is the recent political landscape in the United States. With President-elect Donald Trump openly embracing digital assets, there’s a newfound optimism in the market. His administration’s potential for a Congress filled with pro-crypto lawmakers further fuels this enthusiasm, creating an environment that could be very favorable for cryptocurrencies.
Time.news Editor: That’s a compelling point. Can you elaborate on how Trump’s stance is impacting investor sentiment?
Dr. Lisa Tran: Absolutely! Trump’s endorsement of Bitcoin and similar digital assets signals to investors that the U.S. government may shift towards a more accepting and regulatory-friendly approach. When influential political figures align with cryptocurrencies, it legitimizes them to the broader public and attracts institutional investors who had been hesitant. This elevation in interest naturally drives up prices.
Time.news Editor: Along with that, Bitcoin experienced a 4.7% rise recently. Is this volatility typical for cryptocurrencies, and should investors be concerned about potential downturns?
Dr. Lisa Tran: Volatility is indeed a typical characteristic of the cryptocurrency market. While the rise of 4.7% is substantial, we often see similar fluctuations. Investors should always be prepared for ups and downs. However, the presence of supportive policies and increased institutional involvement could mitigate some risks, making cryptocurrencies a more stable investment in the long run.
Time.news Editor: Some experts argue that the cryptocurrency market is in a bubble. What’s your take on that perspective?
Dr. Lisa Tran: The concern about a bubble is a traditional sentiment that can accompany any market experiencing rapid growth. While some may see the current price surges as unsustainable, the fundamental technology behind Bitcoin — blockchain — offers real utility that could solidify its long-term value. It’s crucial to distinguish between speculative trading and actual adoption based on technological advancements.
Time.news Editor: Excellent insight! As we look ahead, what do you foresee for Bitcoin and the broader cryptocurrency market in the next few months?
Dr. Lisa Tran: If the trend continues with positive political backing and increased adoption by both businesses and individuals, I expect the market will keep pushing upward. However, I also anticipate regulatory developments that could create challenges. Balancing innovation with appropriate regulation will be critical. I remain optimistic but cautious.
Time.news Editor: Thank you for your expertise, Dr. Tran! It’s clear that the intersection of politics and cryptocurrency is fascinating and will undoubtedly shape the future of this burgeoning sector.
Dr. Lisa Tran: Thank you for having me! It’s an exciting time for cryptocurrencies, and I look forward to seeing how these developments unfold.
Time.news Editor: And thank you to our audience for tuning in! Stay with us for more updates on cryptocurrency and other key financial trends.