There is no doubt that the current acceleration is also connected to the victory of Trump who made nothing short of pharaonic promises to Bitcoin and, in general, to the cryptocurrency sector. Crypto-investors are literally betting on the fact that the new American president will keep the big promises he made during the election campaign. According to a study conducted by Coinbase in July 2024, 20% of registered voters in the United States own cryptocurrencies. You’ve definitely read Trump’s sffaff. At the end of July the tycoon took the stage at the “Bitcoin conference” in Nashville announcing that he would make the United States of America the “crypto capital of the planet and the Bitcoin superpower of the world” in case of victory. He also promised to fire “on the first day” of his job Gary Gensler, the chairman of the Securities Exchange Commission, who showed a very cautious approach to the crypto industry. He also promised not to sell the 207 thousand Bitcoins that the American state currently holds (worth more than 15 billion dollars).
Investors will now be watching closely to see if the Trump administration decides to pass Senator Cynthia Lummis’ bill to establish a strategic Bitcoin reserve in the United States. This bill, called the “Strengthening Innovation, Technology and Competitiveness Act through optimized nationwide investment (Bitcoin)”, provides that the US government will receive one million Bitcoins, equivalent to about 5% of the total supply. A possible accumulation plan on Bitcoin USA would be very important in some ways, especially in terms of the reputation of an asset that many people consider controversial. And this is probably why the price of Bitcoin, which Trump defined until a few years ago as “the enemy of the dollar whose value is based on nothing”, has risen above 80 thousand dollars.
In addition to the “Trump effect” there is also a seasonal effect. Until now, the trend of Bitcoin has shown a cyclical behavior with a strong rise starting in the last quarter of the year of the half (that mechanism is proposed every four years that provides for half of the daily emissions to increase the scarcity effect) and its conclusion . the following year creating a euphoric peak. Half-years also coincide with US presidential election years. So 2024 is one of those years. No one can say with certainty whether the pattern will be confirmed at this turn of history, just as no one can say whether in previous cycles the expansion cycle or the US presidential cycle drove the rise (also because that both come in the same year. ). We’ll see how it goes. And above all if Trump has the political will and strength to keep the demanding promises made on Bitcoin and its environment. For the sake of completeness, it should be remembered that the price of Bitcoin has fallen significantly in the past after the peak of the post-expansion year, and was pulled down by about 70%. The “Trump effect” is not just about Bitcoin. Even the alternative coins - many of which have no sense of existence, however, except for the community effect for speculative purposes – encouraging bullish movement. Proof comes from the strong weekly rise of Ethereum, the mother of altcoins and the second cryptocurrency by capitalization, which grew 30% in the past week and returned above $3,000.
The train is moving but you have to be very careful. In these situations, many investors risk triggering “fomo” (fear of losing). That fear of missing the train, and usually, if it is the only factor that pushes towards any type of investment, be it cryptocurrency or any other asset, it risks being a bad advisor if not wider and more more attached to it. a complete view of the portfolio and the time period.
Loading…
Interview: The Times.news Editor and Expert on Cryptocurrency Trends Post-Trump Election Victory
Editor: Welcome to Time.news! Today, we’re diving into the fascinating world of cryptocurrency and its recent surge in popularity, particularly tied to the political landscape in the United States. With us is Dr. Emily Carter, a renowned expert in cryptocurrency and blockchain technology. Emily, thank you for joining us!
Dr. Carter: Thank you for having me! It’s a thrilling time to be discussing cryptocurrency, especially with the current political climate.
Editor: Absolutely! The recent victory of Donald Trump has sparked considerable interest in Bitcoin and the cryptocurrency market. Based on a study by Coinbase, 20% of registered voters in the U.S. own cryptocurrencies. What do you think is driving this surge?
Dr. Carter: The “Trump effect” is indeed significant. His promises to make the U.S. the “crypto capital of the world” have resonated with investors who are optimistic about a more favorable regulatory environment. This kind of proclamatory support from a prominent political figure can energize investor confidence immensely.
Editor: It’s fascinating how political rhetoric can influence financial markets. Trump emphasized firing Gary Gensler from the SEC on his first day if he wins. How pivotal do you think that would be for the cryptocurrency landscape?
Dr. Carter: That’s a crucial point. Gensler has taken a cautious approach towards crypto regulation, which many in the industry see as stifling innovation. If Trump follows through with that promise and appoints someone more crypto-friendly, it could lead to an easier regulatory environment, attracting even more investors and possibly stabilizing the market further.
Editor: On a related note, there’s discussion around Senator Cynthia Lummis’ bill to establish a strategic Bitcoin reserve for the U.S. What implications would that have for Bitcoin’s legitimacy and value?
Dr. Carter: Establishing a governmental Bitcoin reserve could profoundly impact its reputation. By committing to hold a significant amount of Bitcoin, the U.S. government would essentially legitimize the asset in ways that many investors and institutions have long desired. This could potentially increase trust in Bitcoin, leading to its greater adoption and driving the price even higher.
Editor: Speaking of price, Bitcoin has recently crossed the $80,000 mark. Much of that is attributed to the combination of the “Trump effect” and a seasonal pattern typical of Bitcoin’s price movements. How sustainable is this growth trend, do you think?
Dr. Carter: That’s a complex question. On one hand, the combination of political support and historical patterns suggests we could continue seeing strong growth as we approach the 2024 presidential elections. On the other hand, sustainability will largely depend on regulatory clarity and broader economic factors. If the market feels uncertain or deals with major regulatory setbacks, we could see corrections.
Editor: That makes a lot of sense. It’s a delicate balance between optimism and caution. Looking ahead, what do you believe is the most important factor for cryptocurrency investors in the coming months?
Dr. Carter: I think investors must remain vigilant about regulatory developments. Keeping an eye on how the current administration chooses to act in terms of legislation will be key. Additionally, understanding broader market trends and economic indicators will help investors make informed decisions.
Editor: Wise words. The landscape of cryptocurrency is always shifting, and it seems there’s never a dull moment. Thank you, Dr. Carter, for sharing your insights with us today. It’s certainly an exciting time for crypto enthusiasts.
Dr. Carter: Thank you for having me! I look forward to seeing how these developments unfold.
Editor: And thank you to our audience for joining us for this insightful discussion. Stay tuned to Time.news for more updates on cryptocurrency and its impact on our world.