94Ha Viewpoint
Trump, the president-elect of the United States, supports digital assets. Lawmakers who support cryptocurrency have the opportunity to become congressional representatives. Bitcoin has surpassed the $81,000 mark for the first time, prompting celebrations in the digital asset field.
As an important member of the “Trump trade,” Bitcoin reached $81,398 in the Asian market at 12:30 on Monday, November 11th, increasing by nearly $1,000 or 1.24%. This upward trend also boosted smaller cryptocurrencies, such as Dogecoin, which is favored by Trump supporter Elon Musk.
During the election campaign, Trump pledged to put the United States at the center of the digital asset industry, including establishing a strategic Bitcoin reserve and appointing regulators enthusiastic about digital assets. According to Bloomberg, enthusiastic traders are currently paying little attention to the potential implementation speed or the feasibility of the strategic reserve.
Reuters quoted City Index senior analyst Matt Simpson as saying that the crypto market seems to be betting on a relaxation of cryptocurrency regulations. However, he said, “This optimism seems somewhat blind because Trump’s focus seems to be on deportations, pardons, and the comprehensive dismantling of Biden-era policies.”
Trump’s proposals to stimulate domestic economic growth, reduce taxes, and cut bureaucracy have fueled a buying frenzy in stocks, credit, and cryptocurrencies.
Bitcoin has grown by 93% so far this year, and following last Tuesday’s U.S. election, Bitcoin’s investment return has surpassed that of stocks and gold.
Richard Galvin, co-founder of Digital Asset Capital Management, told Bloomberg, “We believe that a large part of the institutional investor market exited before the election and is now re-entering the market after Trump’s victory, creating significant buying pressure that may continue for some time.”
According to Bloomberg, cryptocurrency companies spent $100 million supporting candidates who are positive about cryptocurrencies in the recent election. Trump made a “U-turn” and became a supporter of an industry he once called a scam.
The current President Biden’s administration, on the other hand, is cracking down on digital assets. SEC Chairman Gary Gensler has repeatedly labeled the field as “rife with fraud and misconduct,” and has begun to pressure cryptocurrencies after the market crash and a series of collapses in 2022, particularly after the fraudulent bankruptcy of the FTX exchange.
