Emmanuel OchayiBitcoin Surges to $80,000 in Historic Milestone
Bitcoin hit a record $80,000 on Sunday, a major milestone for the cryptocurrency. This surge comes as investors weigh the impact of President-elect Donald Trump’s re-election and his plans for pro-crypto policies in the United States.
Trump’s commitment to making America a “crypto capital” has energised the crypto community, sparking significant gains not only for Bitcoin but also for other major cryptocurrencies.
Join our WhatsApp ChannelTrump’s Promised Crypto Policies Excite Investors
Donald Trump has pledged strong support for the crypto industry, sparking hope for a friendlier regulatory environment. His promises include protecting Bitcoin and making crypto a national priority, aiming to bolster the U.S. as a hub for digital assets. Trump’s stance has been welcomed by crypto advocates, with a potential regulatory overhaul seen as a big win for Bitcoin investors.
According to Alex Thorn, head of research at Galaxy Digital, Trump’s administration could be a game-changer for the industry: “Crypto is poised to enter a golden era. Trump’s commitment to the industry increases the likelihood of supportive policy changes that may greatly benefit it and other digital assets.”
Ethereum and Other Cryptos Benefit from Bitcoin’s Rise
The market enthusiasm has extended beyond crypto. Ethereum, the second-largest cryptocurrency, rose by 3% over the weekend, reaching $3,203.10. Other tokens, such as XRP and Dogecoin, saw even larger increases, driven by optimism over a potential pro-crypto administration. XRP jumped by 11%, while Dogecoin surged 17%, and Shiba Inu saw an impressive 31% spike.
The impact of Trump’s potential crypto-friendly policies could mean an influx of institutional investors into cryptocurrencies beyond Bitcoin, with Ethereum, XRP, and other altcoins expected to gain from broader acceptance.
Bitcoin Considered a Safe Asset in the U.S. Market
In the current economic climate, It popularity continues to grow as it’s increasingly viewed as a “safe asset” in the market. Despite the high volatility of cryptocurrencies, investors have flocked to Bitcoin, believing it to be a store of value. Trump’s rhetoric around Bitcoin, particularly his suggestion of a strategic national reserve for the cryptocurrency, has added a layer of perceived security and legitimacy.
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The Securities and Exchange Commission (SEC) has not classified Bitcoin as a security, giving it a unique position in the financial landscape. This has allowed more flexibility for investors who see it as a way to diversify portfolios against inflation and economic uncertainty.
The Future of ETFs Under Trump’s Term
An essential aspect of the pro-crypto sentiment is the potential for more favourable treatment of Bitcoin ETFs (Exchange Traded Funds) under Trump’s administration. While Bitcoin ETFs have been growing, they face limitations, particularly in staking rewards. Industry experts anticipate that the new administration could support ETF models that include staking, making them more attractive to investors.
Galaxy Digital’s Alex Thorn sees this change as a significant driver of growth. “We expect that them and other digital assets will trade significantly higher in the coming years. A positive regulatory environment could transform headwinds into tailwinds, making 2024 a promising year for crypto,” Thorn stated.
Bitcoin’s Potential as a Global Digital Asset
With Trump’s pro-Bitcoin team, the cryptocurrency’s future in the U.S. could see major advancements. Many speculate that the administration may even consider policies favoring Bitcoin mining within American borders, aiming to control Bitcoin’s production and reserve in the U.S. Such moves could change the trajectory of Bitcoin, making it not only a valuable investment but also a strategic asset.
Bitcoin’s 18% gain since election day highlights the increasing appeal of cryptocurrencies as a significant investment option. With a crypto-friendly administration, it record high might be only the beginning of a new era for digital assets in the United States.
Final Thoughts: A New Era for Bitcoin and the U.S. Crypto Market
The surge to $80,000 marks a historic point for Bitcoin, driven by Trump’s policies and a possible regulatory shift. As the U.S. potentially enters a new phase of crypto acceptance, Bitcoin stands to benefit. Other coins like Ethereum, XRP, and Dogecoin are also likely to see further gains, riding on the coattails of Bitcoin’s success.
For the crypto market, Trump’s policies could foster growth, innovation, and more widespread adoption, paving the way for them and digital assets to become a staple in the U.S. economy.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
