Bitcoin, the world’s largest cryptocurrency, surged to a record high, reaching $87,083 on Monday, as reported by CoinDesk. This represents a remarkable 28% increase in just one week, reflecting heightened enthusiasm in the crypto market since Donald Trump’s recent election victory.
Experts attribute the current rally in digital assets to expectations of a crypto-friendly stance from Trump’s administration, which could bring clearer regulations and potentially more freedom for crypto trading. Trump, who was once skeptical of cryptocurrencies, embraced them during his campaign, pledging to establish the U.S. as the global leader in crypto and promising to create a strategic reserve of bitcoin.
Support from the Crypto Industry
Trump’s win has been met with optimism from the crypto community, which is hopeful for regulatory changes favoring the industry. His stance includes a potential shake-up at the Securities and Exchange Commission (SEC), as he previously indicated plans to replace SEC Chair Gary Gensler, a known critic of the crypto space.
ETFs Boost Crypto Investments
Bitcoin's rise has also been propelled by the recent popularity of spot bitcoin ETFs, approved by U.S. regulators earlier this year. These investment vehicles have attracted significant funds, contributing to bitcoin’s gains and reflecting investor confidence in long-term growth.
Despite the rally, bitcoin’s history of price volatility serves as a reminder of the risks involved. After reaching nearly $69,000 in 2021, bitcoin saw sharp declines amid Federal Reserve interest rate hikes and the collapse of major crypto platform FTX. Investors, particularly those new to the space, are urged to exercise caution amid these price swings.
With inputs from agencies
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