Enthusiasts of digital assets have reasons to celebrate. The cryptocurrency market has literally exploded, thanks to which BTC reaches another ATH this year and is increasingly approaching the mythical threshold of USD 100,000. What caused such large increases?
The cryptocurrency market reacts to Donald Trump’s victory
It cannot be denied that we have all spent the last few weeks closely observing the American political scene. Investors eagerly followed the presidential election results due to Donald Trump’s pro-cryptocurrency stance. The Joe Biden administration and the current SEC authorities have clearly shown over the last four years that they are not supporters of digital assets (to put it mildly), which was clearly felt by the cryptocurrency market. Donald Trump’s campaign was largely based on showing counterpoint to the decisions and governance of the Democratic party. Trump admitted that his plan is to make the US the “Crypto Capital of the World.”
The cryptocurrency market accepted these declarations with an appropriate amount of caution, because, as is well known, election promises cost nothing 😉 However, this does not change the fact that Donald Trump had a strong influence on the cryptocurrency market already in the first few days of his still informal presidency. His latest news regarding regaining balance in the economy, turning to fossil fuels, etc., had a very strong impact on investors, causing them to go green, which is clearly visible in the growth of the most important cryptocurrencies, because in the last 7 days:
- BTC increased by 26.6%, reaching ATH again this year ($89,864.13)
- ETH increased by 35% ($3,290)
- SALT up 30% ($213)
- DOGEone of Elon Musk’s favorite tokens, increased by a staggering over 122%! ($0.3855)
Elon Musk on the staff and his influence on the cryptocurrency market
Since I have already mentioned the owner of portal X, it is necessary to indicate his influence on the current situation. Elon Musk’s presence on Trump’s staff adds importance to the new administration. Musk, known for his influence on cryptocurrencies, especially Dogecoin, has previously sparked numerous “meme bull markets” with his comments and tweets. His support on the staff may indicate a commitment to further promotion of cryptocurrencies, which increases investor confidence in the market. Musk was very eloquently involved in electioneering for Donald Trump. As is well known, Portal X (formerly Twitter) is one of the most important places for the entire community around digital assets.
Trump’s pro-crypto government, i.e. a new era for bitcoin and altcoins
Donald Trump’s victory opens the prospect of a pro-cryptocurrency government that could revolutionize the American financial market. Trump announces that his administration will support the development of blockchain technology and cryptocurrencies, creating an environment that favors innovation in the digital asset sector. According to experts, if Trump actually keeps this promise, the United States could become a global center of cryptocurrency innovation.
One of the key steps announced by Trump is the simplification of regulations, which are currently a barrier to the development of the sector. According to observers, greater freedom for cryptocurrencies may attract both investors and technology startups to the US interested in building blockchain projects without fear of excessive restrictions. In practice, this means that the SEC will have its claws quite blunted. Gary Gensler goodbye?
Preparations to create a pro-cryptocurrency government and announcements of further investments in blockchain technology indicate a possible long-term impact of the Trump administration on the digital asset market. As its policies become more precise, investors will closely monitor next steps that could change the nature of the global financial sector.
Cryptocurrency reserves as a safe haven in uncertain times
Cryptocurrencies are increasingly perceived as an alternative form of capital security, especially in the face of global economic and political turmoil. In recent years, many investors have been looking for new ways to protect their funds against inflation and the instability of traditional currencies. Bitcoin, often called “digital gold,” (even by BlackRock’s CEO!) attracts investors precisely because of its limited supply and status as an asset independent of banking systems. Interestingly, at the beginning of 2024, Wall Street became interested in BTC, when spot BTC ETF funds entered the stock exchange in a storm worthy of a hussar.
The move towards cryptocurrencies is therefore a natural behavior of the crowd that has seen value in digital currencies and does not want to miss out on the BTC boom. How does the cryptocurrency market react to such a large and sudden interest in digital assets? The green on the BTC and ETH charts and the beating of subsequent ATHs speaks for itself 😉
You can buy Bitcoin and other cryptocurrencies in a simple and safe way on the zondacrypto exchange.
