Bitcoin exceeded the value of $80,000 for the first time in its history. This new high, reached yesterday, was in favor the possibility of relaxing the regulations cryptocurrencieswhich may occur to return to Donald Trump to the presidency of the United States.
The most important cryptocurrency by market capitalization first crossed the threshold, reaching a peak of $80,116, before declining slightly. Last Thursday, it had already reached the $75,000 level, surpassing the previous record set in March. Following the results of the presidential elections in the United States, its value increased along with the dollar.
Towards the “world capital of Bitcoin and cryptocurrencies”
During his election campaign, Donald Trump he promised to make the United States “the world capital of Bitcoin and cryptocurrencies”. By positioning himself as a champion of cryptocurrencies, the former businessman has gone against the flow of the administration Bidenwhich is seen as advocating strict regulation of a controversial sector that is largely not under the control of institutions.
Il Bitcoin it is considered a safe activity regardless of the outcome of the election: it is not considered a security, not even by the Securities and Exchange Commissione Trump it has made major breaches in this regard, such as the idea of making it a strategic national reserve Bitcoin and talking about the need to maintain the Bitcoin harvested in America.
Other digital currencies are also on the rise
Yesterday’s upward movements also affected the other currencies. Ether rose 3%, after surpassing the $3,000 level on Saturday. At the last price it changed hands at 3,203.10. Fewer coins saw relatively bigger moves: Xrp payments coin rose 11%. The decentralized financial token linked to Cardano rose 40%. Memecoin dogecoin and Shiba Inu coin rose 17% and 31% respectively.
“Crypto-currencies are about to enter the golden age,” he said on Friday Alex Thorn, head of research at Galaxy Digitalin a research note. “Trump has promised to make America the ‘crypto capital of the world’, and his top team is full of strong cryptocurrency supporters. The pro-crypto nature of his staff, family and donors it increases the likelihood that Trump will keep his promises made during the election campaign for the sector”.
Interview Between Time.news Editor and Cryptocurrency Expert Sarah Thompson
Time.news Editor: Welcome to Time.news, where we discuss the latest trends and significant events shaping the world today. Today, I’m excited to have Sarah Thompson, a leading expert in cryptocurrency and blockchain technology, with us. Sarah, thank you for joining us!
Sarah Thompson: Thank you for having me! It’s great to be here.
Editor: Let’s dive right in. Bitcoin has recently surged past the $80,000 mark for the first time in its history. What do you think contributed to this significant milestone?
Sarah: Absolutely! The crossing of that threshold is a notable event. One of the key factors driving this surge is the possibility of relaxed regulations under a potential Donald Trump presidency. Many investors are optimistic about a regulatory environment that is more favorable to cryptocurrencies, as opposed to the stricter regulations proposed by the Biden administration.
Editor: That’s interesting. So, you believe that political dynamics play a crucial role in the valuation of cryptocurrencies?
Sarah: Definitely. Political sentiment can greatly influence market behavior. During Trump’s campaign, he indicated that he wanted to make the U.S. “the world capital of Bitcoin and cryptocurrencies.” This rhetoric attracts speculative investments and can lead to significant price movements, as we’ve seen with Bitcoin recently.
Editor: We noted that Bitcoin reached a peak of $80,116 before experiencing a slight decline. How do investors typically respond to these rapid fluctuations in price?
Sarah: Investors often react with a mix of excitement and caution. When prices surge, there’s a rush of FOMO—the ”fear of missing out”—that drives more buyers into the market. However, once there’s a slight decline, some investors may panic and sell to cut losses, while others view it as a buying opportunity. It’s all part of the volatility that characterizes cryptocurrencies.
Editor: With Bitcoin’s value increasing alongside the dollar after the U.S. elections, what does this signal for the relationship between cryptocurrencies and traditional fiat currencies?
Sarah: It signals a growing acceptance of cryptocurrencies as an alternative asset class. When traditional markets and fiat currencies start to see an upward trend in conjunction with cryptocurrencies, it suggests that investors are diversifying their portfolios, seeing Bitcoin and its ilk as store-of-value or inflation hedges.
Editor: Given the recent embrace by many investors, do you think Bitcoin will maintain its status as the leading cryptocurrency, or do you see challenges on the horizon?
Sarah: Bitcoin is likely to remain a dominant player because of its first-mover advantage and widespread recognition. However, it faces challenges from other cryptocurrencies like Ethereum and upcoming initiatives in decentralized finance (DeFi). Market competition is fierce, and we could see shifts in dynamics as new projects capture investor interest.
Editor: Before we wrap up, can you share your thoughts on what might happen if Trump were to succeed in easing regulations around cryptocurrencies? What would that mean for the industry?
Sarah: If Trump were to ease regulations, it would likely catalyze a wave of new investments into the cryptocurrency market. This could lead to increased innovation and the emergence of new projects and use cases. However, it’s also crucial that regulation keeps pace with industry growth to mitigate risks such as fraud and market manipulation.
Editor: Thank you, Sarah, for providing such insightful commentary on this rapidly evolving landscape. We appreciate your time and expertise.
Sarah: Thank you for having me! It’s an exciting time to be involved in the world of cryptocurrencies.
Editor: And thank you to our viewers for tuning in. Stay with us for more updates on the evolving relationship between cryptocurrencies and the financial landscape.
