On Sunday, Bitcoin reached an all-time high, surpassing $80,000 for the first time. This remarkable increase in value has happened just before the U.S. presidential election, with its price rising sharply as soon as it became apparent that Donald Trump would win. Since his victory, Bitcoin’s value has continued to climb.
This year alone, Bitcoin has increased by 80%. In comparison, the S&P 500 index, which tracks the stock performance of 500 large companies, has also done well but only gained about 25.7%. After briefly hitting the impressive $80,000 mark, Bitcoin was trading just below that value as of Sunday morning.
Many people in the cryptocurrency industry believe that Trump’s win is a positive indication for Bitcoin and other digital currencies. Interestingly, although Trump was once critical of Bitcoin, claiming it was “based on thin air,” he has recently become a strong supporter of cryptocurrencies. This shift in his perspective is significant, especially since his Trump administration has taken a more favorable stance towards digital currencies compared to President Biden’s administration, which has been more cautious and regulatory.
A major reason for Trump’s change of heart regarding cryptocurrencies is that he now has a financial interest in the industry. In September, Trump and his children launched a new cryptocurrency venture called World Liberty Financial. During the announcement, Trump described the cryptocurrency industry as “very young and very growing” and expressed his belief in its future.
In contrast, the Biden administration has approached cryptocurrencies with skepticism. For example, Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), has voiced strong concerns about the crypto space, labeling it as “ripe with fraud, scams, and abuses.” Since taking office, the SEC has sued various cryptocurrency companies and has been working to impose regulations on the industry, citing that many of these cryptocurrencies might be operating illegally as securities. The agency has also teamed up with organizations like the Department of Justice to crack down on crypto fraud, targeting high-profile figures such as Sam Bankman-Fried, the former CEO of FTX, a well-known crypto exchange that collapsed amid scandal.
While Gensler has been cautious about the crypto industry, he has also approved the creation of a Bitcoin Exchange-Traded Fund (ETF), which allows people to invest in Bitcoin through their retirement accounts. However, in January 2024, Gensler’s social media account was hacked, and a false post claimed that the anticipated Bitcoin ETF was now up and running, which temporarily caused a spike in the price of cryptocurrencies.
Trump has also expressed his views on the future of cryptocurrencies. He indicated that he envisions a role for Bitcoin in national security, suggesting that the U.S. should create a strategic national stockpile of Bitcoin, similar to how the country maintains a reserve of oil. This would involve the government purchasing and investing in cryptocurrencies to safeguard national interests.
Adding to this narrative, Elon Musk, a prominent supporter of Trump and a well-known advocate for cryptocurrencies, has helped drive interest and excitement in the crypto market. Recently, Musk’s favorite digital currency, Dogecoin, saw its value rise by more than 20% on Sunday, reflecting the strong enthusiasm and energy that surrounds the cryptocurrency space at this moment.
