theThe price of bitcoin, which started the year at $38,000, is now close to $100,000. A surge that, in recent weeks, owes much to the Trump effect. During his election campaign, the president-elect did not forget to participate in the Bitcoin 2024 Conference in Nashville in July, so as not to disappoint the players in the crypto world who were among his major financiers.
In the capital of Tennessee, forgetting that a few years ago he had spoken of “a scam”, the new convert promised this time with his bitcoin Act to make the United States the land of choice for this electronic currency. Trump has also pledged to remove the crypto community’s sworn enemy, Gary Gensler, president of the SEC, the stock exchange authority that has distinguished itself by multiplying legal actions against its actors (Binance, Kraken, Coinbase…).
THE Spot Bitcoin ETF
Legitimately concerned by the multiplication of hacking or money laundering operations, not to mention the failures of Terra or FTX, Gensler wanted to achieve the same transparency in the world of cryptocurrencies as in traditional finance. An unsustainable attitude for supporters of cryptocurrencies who, considering the parallel unfounded, are asking for a special regime. Gary Gensler’s mandate would last until 2026, he preferred to resign and Trump won’t even have to fire him. The crypto geeks rejoice.
For them, these changes at the top – there is even talk of the appointment of a cryptocurrency manager at the White House – do nothing but make the rise of bitcoin even more beautiful. Regardless of whether the pullback happens later, their favorite currency has largely demonstrated that it can bounce back in recent years.
The craziest predictions are circulating today, with the prize going to tech powerhouse Cathie Wood, whose Ark crypto fund sees bitcoin at $1.5 million in 2030! According to her, the creation of spot bitcoin ETFs this year “increases” demand. These ETFs, securities indexed to the value of bitcoin, allow everyone to play with electronic money without even owning one, significantly expanding the customer base. In fact, it is the promoters of these securities (Black Rock, Grayscale, Fidelity, etc.) who, in order to cover themselves, must procure them, pushing their prices upwards. Bitcoin ETFs are already enjoying great success: their value has surpassed that of gold-indexed ETFs.
Bitcoin, an unidentified monetary object
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In fact, bitcoin is an unidentified monetary object. In 2008, its alleged creator, Satoshi Nakamoto, wanted to make it a real currency (unit of account, instrument of transaction and store of value) totally independent of any authority, of any central bank, so that individuals could exchange it freely. with one click. A libertarian dream made possible thanks to revolutionary technology, the blockchain and a brilliant and never surpassed algorithm that has made bitcoin the king of cryptocurrencies (60% of the market).
Today the project has seriously derailed. If bitcoin survives alongside traditional currencies, it is only in countries plagued by inflation or with few banks (Argentina, Nigeria, Venezuela, Turkey, etc.). For the rest, it is just an instrument without any real use other than speculative, whose rarity is artificially maintained by the fact that no more than 21 million units will be issued - we are close… All this has not prevented Salvador from give him legal tender, without his situation improving.
But when the future president of the United States plans to set up a strategic reserve in bitcoin, the surprise is great. Made up of funds seized by American courts, it could initially be equipped with 200,000 units, or approximately 20 billion dollars. A headache for the Federal Reserve and a total heresy for the authentic “bitcoiners” who ban all authority, a heresy that delights them greatly these days…
What is the significance of Bitcoin ETFs in the context of the recent price surge?
Time.news Editor: Welcome to our special segment where we discuss the recent surge in Bitcoin’s price and what it means for the future of cryptocurrencies. Today, we have with us Dr. Emily Chen, a leading economist specializing in digital currencies and blockchain technology. Thank you for joining us, Dr. Chen!
Dr. Emily Chen: Thank you for having me! It’s great to be here to talk about such an exciting topic.
Time.news Editor: Now, Bitcoin’s price has skyrocketed from ,000 to nearly $100,000 this year. Many attribute this surge to the influence of the Trump effect, especially after his recent attendance at the Bitcoin 2024 Conference. What’s your take on this?
Dr. Emily Chen: Indeed, the so-called “Trump effect” has played a significant role. His rhetoric and actions indicate a shift toward a more crypto-friendly stance, especially when compared to previous comments labeling Bitcoin a “scam.” His promises to create a favorable environment for cryptocurrencies could encourage both institutional and retail investors to dive into the market.
Time.news Editor: Speaking of the regulatory side of things, Trump’s intention to remove Gary Gensler from his position at the SEC has been a hot topic. Gensler has often been viewed as the enforcer of strict regulations on cryptocurrencies. How might his departure impact the crypto market?
Dr. Emily Chen: Gensler’s resignation would certainly be seen as a relief for many in the crypto community. His approach aimed at placing cryptocurrencies under the same stringent regulations as traditional finance was met with considerable resistance. A more lenient regulatory framework could lead to greater innovation and investment in the digital currency space. Plus, the potential appointment of a dedicated cryptocurrency manager at the White House could streamline and promote a more favorable regulatory environment.
Time.news Editor: It’s fascinating how regulatory changes can have such a direct impact on market sentiment. What do you think about the recent talk regarding Bitcoin ETFs? Cathie Wood has even predicted Bitcoin could reach $1.5 million by 2030, especially with these ETFs increasing demand.
Dr. Emily Chen: The introduction of spot Bitcoin ETFs is indeed a game-changer. These financial instruments allow investors to gain exposure to Bitcoin without owning it directly. It opens the floodgates for institutional investment and brings a level of legitimacy to cryptocurrencies that many traditional investors look for. If the predictions about increasing demand hold true, we could see Bitcoin’s price continue to rise dramatically.
Time.news Editor: Speaking of predictions, there’s always a mix of optimism and skepticism in the market. How do you view the current euphoria surrounding Bitcoin compared to historical trends?
Dr. Emily Chen: In the world of cryptocurrencies, we often see cycles of hype followed by corrections. While the current enthusiasm is reminiscent of previous bull markets, Bitcoin has historically demonstrated resilience and the ability to recover. This recent surge does feel different in terms of institutional adoption and product innovation, suggesting that Bitcoin may have reached a new level of maturity. That said, it’s crucial for investors to approach with caution, as volatility continues to be a hallmark of this market.
Time.news Editor: Wise words, Dr. Chen. As we continue to follow this dynamic landscape, what advice would you give to those looking to invest in Bitcoin or cryptocurrencies?
Dr. Emily Chen: Do thorough research, understand the technology behind these digital assets, and invest only what you can afford to lose. Additionally, staying informed about regulatory developments is crucial as they can significantly impact market conditions. Ultimately, be prepared for volatility and have a long-term perspective.
Time.news Editor: Excellent advice! Thank you, Dr. Chen, for sharing your insights today. With all these developments, it will be interesting to see how Bitcoin evolves in the coming months and years.
Dr. Emily Chen: Thank you for having me! It’s certainly an exciting time for cryptocurrencies, and I look forward to what the future holds.
