Trump's shift in stance towards cryptocurrencies has contributed to Bitcoin's recent growth. During his presidential campaign, Trump promised to make the US a global leader in the cryptocurrency market, aiming to make the country the "crypto capital of the planet." This led to a 10% price increase in Bitcoin and a market cap of $1.445 trillion. Currently, Bitcoin is priced at $80,561.52, with a 0.20% growth.
Trump has proposed a national Bitcoin stockpile to leverage the potential of the world's largest cryptocurrency as an asset and appoint more supportive regulators. This contrasts with the previous administration's cautious approach to cryptocurrency, under President Joe Biden.
Biden's tenure saw the Securities and Exchange Commission (SEC) focus on regulating the crypto sector more aggressively, often citing concerns over fraud and market manipulation, following the FTX exchange crash two years ago.
Bitcoin's growth is attributed to Trump's relaxed stance on cryptos and institutional interest in the market, particularly through exchange-traded funds (ETFs). Bitcoin ETFs, like the iShares Bitcoin Trust managed by BlackRock Inc.
provide exposure to Bitcoin without directly purchasing the asset. These funds have seen substantial inflows, including a record $1.4 billion on one day, providing liquidity and stability to the global crypto market. Bitcoin has grown by about 93% this year.
The Federal Reserve's interest rate cut has led to lower borrowing costs, attracting investors to higher-yielding assets like Bitcoin.
Digital assets like Ethereum and Dogecoin have also experienced growth, with celebrity endorsements, such as Elon Musk's, benefiting Dogecoin, a cryptocurrency backed by Trump's ally.
0 Comments