Bitcoin prices hit an all-time high above $77,000 yesterday. (Photographic illustration by … (+)
Bitcoin completed a big week on Friday, November 8, after the digital currency hit a new all-time high following Donald Trump’s decisive victory in the 2024 presidential election.
The world’s most valuable cryptocurrency climbed as high as $77,312.18 on Friday, according to Coinbase data provided by TradingView.
At this point, the digital asset had risen more than 12% in seven days and was trading at a brand new high, according to additional figures from Coinbase.
After hitting this latest high, bitcoin pulled back slightly, but held the vast majority of its recent gains for the rest of the day.
When asked to explain the cryptocurrency’s price movements over the past week, market experts identified a short list of causal factors.
Trump victory is bullish for crypto
The first and most important development they pointed to as being behind the recent fluctuations in the digital currency was this year’s US presidential election, which resulted in a clear victory for Trump, who will make a second mandate from January.
Several analysts have highlighted how positive this outcome could be for the crypto/blockchain industry.
“Crypto enthusiasts are generally excited to see Trump in office, as he is a strong supporter of Bitcoin and blockchain technology,” Brett Sifling, investment advisor for Gerber Kawasaki Wealth & Investment Management, said via email.
TikTok influencer known as Wendy O also spoke out, pointing out that Trump’s open support for Bitcoin and cryptocurrencies in general was very bullish for digital currency markets.
She said in a direct message sent via paralyzed the sector, prompting some companies in the sector to relocate. towards jurisdictions with more favorable regulations.
“Now that Trump is elected, trust has been restored in the crypto industry for the long term with the promise of comprehensive regulation, the creation of a strategic Bitcoin reserve, and the ability for individuals to keep control of their own keys,” continued Wendy O. .
Sifling also shed light on how the outcome of the 2024 presidential election will likely affect financial and economic policy, including the crypto regulatory framework, and how these developments will combine to impact assets such as stocks and digital currencies like bitcoin.
“While current regulators have given mixed signals to crypto companies, I think people are under the impression that Trump will lay out a plan to solidify America’s place in the global crypto ecosystem,” he said. he declared.
“People like Gary Gensler have also waged a war on crypto during his tenure as regulator and market participants believe he will soon be replaced by someone more friendly to the industry,” Sifling said.
“This, combined with general optimism about deregulation and tax reduction, has created a fairly favorable backdrop for the future of risk assets like Bitcoin. »
Brett Munster, portfolio manager at Blockforce Capital, also gave his views on how Trump’s victory could lead to a significant change in the regulatory framework of the world’s largest economy.
“A Trump presidency offers a potential game-changer for the crypto industry, moving it from years of regulatory hostility to a much more favorable position,” he wrote via email. “The Trump campaign has taken a particularly pro-crypto stance, much stronger than Harris’ platform, signaling potential support for digital assets at the federal level.”
“Even if some of Trump’s promises were campaign rhetoric, a neutral or hands-off stance would be a substantial improvement over the previous administration’s more adversarial approach,” Munster noted.
Victory by AA vote
The portfolio manager shed further light on the situation, saying that government officials in the country are increasingly open to digital currencies.
“It’s not just Trump’s victory that portends a favorable regulatory environment for crypto,” he said. “In Ohio, Bernie Moreno’s victory over incumbent Sherrod Brown, one of the Senate’s most vocal crypto critics and former chairman of the Senate Banking Committee, represents a major victory for the industry. “
“Moreno is a strong supporter of crypto, and with Tim Scott, another strong supporter, likely to chair the Banking Committee, the Senate’s influence on crypto policy could take a turn favorable to the industry. Scott’s public advocacy, highlighted by his appearance at Bitcoin 2024, illustrates growing pro-crypto sentiment in Congress,” Munster said.
The Fed cuts rates in November
Several analysts also pointed to the Federal Open Market Committee’s decision to cut rates again at the November policy meeting.
Following this event, the FOMC announced in a press release that it was lowering the target range for the federal funds rate by 25 basis points, bringing it to between 450 and 475 bps.
Independent cryptocurrency analyst Armando Aguilar spoke about the development, saying it was helping to inject more bullish sentiment into the markets.
The federal funds rate has implications for a wide range of borrowing costs, and lowering it can make it easier for consumers and businesses to obtain credit, which in turn can help spur more robust economic growth .
Many risky assets, including stocks and cryptocurrencies, could benefit from more favorable economic conditions and their impact on global investor sentiment.
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS and SOL.
