Cryptocurrency enthusiasts hoped that a presidency of Donald Trump will inaugurate a bull market for digital assets, after the promises of the campaign to make the United States the “cryptographic capital of the planet” and a “bitcoin superpower”.
So far, things are going well for the cryptographic crowd.
The Bitcoin Prix – the most important and most popular cryptocurrency in the world – jumped at around $ 104,000, an increase of around 50% since Trump was elected for a second term. And in a short time since Trump recovered the Oval Office, his administration managed to promulgate a Pro-Crypto program.
“All the things on the list of wishes last summer happened – especially for Bitcoin,” explains Andy Baehr, managing director of Coindesk Indices.
Here are three updates that have occurred so far.
New faces, new regulations
Trump received millions of donations from the cryptography industry in the hope that it would make promises to retreat a perceived repression of the government against the crypto led by the former chairman of the Commission of Securities and the ‘Exchange, Gary Gensler.
Gensler resigned earlier this month, giving way to an interim president that Trump plans to replace by the former SEC commissioner Paul Atkins, currently CEO at Patomak Global Partners. Trump has also installed David Sacks venture capital as a white house and cirypto czar.
The first major decision of the dry under Trump: withdraw an accounting rule known as SAB 121, which forced banks and other financial institutions to treat cryptocurrencies as a passive to their record.
Defenders of the cryptographic industry claim that this decision will open the way to a greater adoption of cryptography in people who prefer to interact with inherited financial institutions.
“The abrogation just gives much more comfort to financial institutions to be able to consider custody of cryptography, which should open the way to much more regulated institutions to adopt crypto as a asset class that they support on behalf Customers “, explains Kian Sarreshteh, co-founder and CEO of the digital investment platform invested.
The first family of coins
On Friday before its inauguration, Trump launched his own piece of memes, a type of cryptocurrency based on a meme, a character or a social media trend. The token, which presents an image of Trump, went from about $ 6.50 to $ 73 in two days before undergoing a draw of 50%. First lady Melania Trump launched her own room, which exceeded more than $ 13 before settling in around $ 2.30.
Crypto experts say that there are several ways to learn that the first family extinguishes parts with a value fixed only to their fans are ready to pay for them.
The first is that it is another powerful sign that the current administration will continue to transmit cryptographic user-friendly policies, explains Federico Brokate, vice-president and head of the American affairs of the Crypto 21Shares Crypto.
“This is another vote of trust in the ecosystem by this new administration,” he said. “This is downright falling into this category of continuous promotion and adoption and adoption (digital assets) by this new administration which comes to power.”
Another is skepticism in the name of retail merchants. It is important to remember that the currencies even – even those marked by the president – are volatile, even according to the standards of Crypto. Those who exchange these tokens should know that they are entirely speculative, explains Baehr.
“The coins are definitely frivolous. He says it directly on the label. He says:” It is a meme on a dog “”, he says, referring to pieces such as Dogecoin on the theme of Shiba Inu. “Frivolity is written directly outside. So you are not fooled.”
Looking for the next catalyst
Last week, Trump signed a decree to promote the progress of crypto in the United States and possibly develop a stock of national cryptocurrency.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as in the international direction of our country,” said order.
The order also calls for the creation of a working group to examine the possibility of an American cryptography cache “potentially derived from cryptocurrencies legally seized by the federal government through its efforts to apply the law” .
For the most enraged fans of cryptography, the order looked like a small step rather than the giant jump they hoped. After all, Trump launched the idea on the campaign track according to which his government buy Bitcoin in order to establish a strategic reserve – a decision which, according to experts, would be a huge bargain for the value of the room.
Although the decree mentioned a stock, he did not provide for any plan to make bitcoin the cryptocurrency of the national reserve, or mentioned by his name. This means that Bitcoin maximalists in search of the next big growth catalyst will have to be patient for the moment.
“It doesn’t look like the kind of thing that could be signed, sealed and delivered in a week,” said Baehr. “I don’t think people have reasons to be as concerned as the community (crypto). The community was simply looking for a reason for the price (Bitcoin) to increase up to $ 250,000.”
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