The Trump pump after the US elections catapulted Bitcoin to $93,000. Here are the reasons for a possible further increase.
There is currently a lot of hype about a new bull run for Bitcoin, the largest and oldest cryptocurrency in the world. The coin hit a new all-time high this week and is just $7,000 away from the $100,000 mark.
Even the “Financial Times” wrote that Bitcoin had experienced a “big bang moment” with the new high. A “global reallocation of portfolios towards a Bitcoin share” is recommended. Those are big words. What’s behind it?
Is the US buying Bitcoin in bulk?
Announcement. First of all, the election of Donald Trump as US President. Bitpanda founder Eric Demuth believes $100,000 for one Bitcoin is still possible in November. Because now a lot of uncertainty is gone. “With the clear election of Donald Trump as US President, there is clarity.” Bitcoin will find a friendly regulatory environment in the USA.
Reserve currency. In the US, there are even plans to purchase Bitcoin as a national reserve. “Other states and institutions could try to get ahead of the USA with Bitcoin purchases,” says financial journalist Niko Jilch (“What Bitcoin Brings”), pointing out a possibility of massive global demand that suddenly no longer seems entirely unlikely. Eric Demuth also sees exchange-traded Bitcoin ETFs as the driver of the current rally. These are recording record inflows.
In addition, since the halving in the summer, the number of new Bitcoins created every day has been halved, AUSTRIA reported. Since then, Bitcoin has become harder money than gold if you look at the newly created Bitcoin in relation to the existing stock using the stock-to-flow model. At the same time, it must be said that cryptocurrency is still an experiment and could fail.
Miner’s paradise in the USA
Where are Bitcoin mined? Things could also be particularly interesting for Bitcoin prospectors, the miners, says best-selling author Marc Friedrich to AUSTRIA.
“Mining, i.e. the mining of new Bitcoin, has become an increasingly controversial topic in recent years, particularly with regard to electricity consumption. “In the summer of this year, Donald Trump met with several representatives of large listed Bitcoin miners and announced that all future Bitcoin would be mined in the USA,” says Friedrich.
The entire industry should be able to breathe a sigh of relief under a Trump administration – and a price of $100,000 per Bitcoin is indeed likely. But there is no guarantee for this.
