The top cryptocurrency, Bitcoin, achieved a new record by crossing the $100,000 mark. The marked increase comes after several market events associated with Donald Trump as the next U.S. president, indicating renewed interest in digital currencies.
Donald Trump backs cryptocurrency in his presidential campaign. During his campaign, Trump endorsed the establishment of the United States as a global hub for cryptocurrencies. This vision entailed the creation of a “strategic reserve " and the appointment of Paul Atkins as the next chair of the US Securities and Exchange Commission.
After Trump’s victory on November 5, Bitcoin increased from $69,374 to a high of $103,713 by December 4. In a statement on his Truth Social platform, the president-elect added more optimism to the market. Trump's acknowledgement of the emerging sector suggests that his administration could boost the credibility of digital currencies.
The upward trend in Bitcoin is considered to have resulted from improved political factors and institutional demand. Since the election, the prices of crypto futures have risen as investors expressed confidence in the holdings. Pundits have cited Trump’s positive approach to cryptocurrencies as supporting Bitcoin. Trump’s administration’s support of blockchain technology and cryptocurrencies has helped the common investor become less skeptical of the industry’s future.
Moreover, Bitcoin's current dynamics depend on the overall trends of cryptocurrency market recovery. From a low of $17,000 two years ago, following the FTX exchange crisis, Bitcoin has been on an upward trend again. This latest wave also comes after institutions and firms embraced cryptocurrency as an investment asset.
The Bitcoin community has received Trump’s win in this year’s US election positively as they believe it will lead to a productive dialogue on the regulatory side. The market participants expect that the incoming administration will develop policies encouraging a culture of innovation, with little or no interference from unnecessary regulations.