Bitcoin Soars to All-Time High: How Trump’s Election and Economic Trends Fuel Its Unstoppable Rise

“Bitcoin hit an all-time high today and it looks like there is no end to its growth. Bitcoin is up more than 20% since last Monday and up more than 95% since the start of 2024,” said Simon Peters, cryptocurrency analyst at eToro.

At the beginning of September, bitcoin was trading for CZK 1,22,989, but by the end of October it was already CZK 1,494,764. However, on the night from Wednesday 6th to Thursday 7th November – less than a day after the election of Donald Trump as US president – the exchange rate went up to CZK 1,801,378. The record from March this year was broken, when virtual coins were traded for CZK 1,704,367.

However, the increase in value did not stop even after that. On Monday afternoon, one virtual coin was traded for CZK 1,956,054. The value of the world’s most famous cryptocurrency has never been higher.

“Bitcoin is benefiting from the election of Donald Trump as president and the fact that a Republican red wave is flowing through the United States. Republicans won a majority in the US Senate and are hopeful of a narrow majority in the House of Representatives. This will make it easier to implement bitcoin-friendly legislation,” said Trinity Bank Chief Economist Lukáš Kovanda.

He recalled that, in his campaign, Trump “promised to make the US the global center of bitcoin and cryptocurrencies in general, even laying the foundation for strategic state reserves in bitcoin.” “Other countries could also move to build up their own bitcoin reserves out of fear of being left behind, supporting the price of bitcoin,” Peters said.

Higher investments are already emerging. “As a result of Trump’s victory, the highest number of investors’ money went to bitcoin money in the US, led by the one led by BlackRock, the largest investment company in the world,” Kovanda said note.

Some analysts even predict that the exchange rate could rise to more than 2.36 million crowns in the future, as Novinky.cz reported already.

“Another stimulus for the growth of bitcoin prices is the reduction of interest rates by the US central bank, which usually increases the demand for riskier and more speculative assets, as it lowers the cost of their funding and at while reducing yields of safe investment instruments such as US government bonds,” the economist concluded.

Even if Bitcoin is now breaking records, no one can say with 100% certainty whether the rate will increase or, on the contrary, lose. Fluctuations in exchange rates are high as is normal for digital currency.

Bitcoin has traditionally been a driving force for other cryptocurrencies, eg also strengthening ethereum. However, in the case of the second most famous digital currency, the highest exchange rate has not yet been broken.

Ethereum set an all-time record in November 2021, when it traded for CZK 104,970.

Ethereum was offered for CZK 51,129 at the beginning of September, and CZK 57,844 at the beginning of October. However, the second most famous cryptocurrency in the world is currently trading for CZK 69,343.

In the second half of July, the US Securities and Exchange Commission (SEC) approved a request allowing ETF funds to be listed on the exchange, which will be linked to ethereum. The rate was expected to rise – like Bitcoin before it. However, no significant increase in the exchange rate has yet come.