Bitcoin, the cryptocurrency with the highest value and reference in the market, continued its unstoppable rise this Monday, successively surpassing in the session for the first time the levels of 81,000, 82,000, 83,000, 84,000, 85,000 and 86,000 dollarswith a revaluation of more than 20% since Donald Trump‘s victory in the White House elections in the United States last Tuesday and which has allowed its value to almost double so far this year.
The bitcoin ‘rally’ in recent sessions, in which it has marked successive all-time highs in the expectation of a more favorable position for cryptocurrencies of the new US Administration, has boosted the price of the crypto asset to 86,201.9 dollars (80,889.86 euros), according to data from Binance, Coindesk and CoinMarket consulted by Europa Press, compared to around 69,400 dollars (65,123.35 euros) before Trump’s victory was confirmed.
During the election campaign in the race for the White House, Trump promised to make the United States the world capital of cryptocurrenciescreate a strategic bitcoin reserve and appoint regulators who would bet on digital assets.
Once his return to the presidency and the Republican majority in the Senate are confirmed, as well as the probable dominance of the House of Representatives, the new Administration would have broad powers to implement their policies.
In this sense, Trump did not hide during the campaign that among his first decisions as president would be replace current Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, appointed by Joe Biden in 2021 and who has led the SEC’s offensive against the cryptocurrency industry.
In this regard, although another of the factors that has boosted the rise of the crypto asset was the authorization at the beginning of the year of the launch of ETFs or bitcoin spot exchange traded funds by the SEC, the president of the regulator did not hesitate to warn that still did not support the cryptocurrencyreiterating the need for investors to be cautious in the face of the myriad associated risks.
Likewise, other crypto assets also benefit from the ‘Trump effect’. Ethereum has accumulated a rise of more than 37% in the last week, while Solana’s price gains almost 32% and Cardano’s price rose more than 79%. In addition, Dogecointhe ‘meme’ asset popularized by Elon Musk, one of the main businessmen linked to Donald Trump’s candidacy, It shot up more than 102% in one week.
Aside from the price of cryptocurrencies, other assets linked to the ‘Trump effect’ also registered strong increases, including Tesla shares, which this Monday recorded another 8.53% gain until trading at $348.62 (327 .28 euros) around 8:10 p.m., with a revaluation of more than 22.6% since the electoral victory of the Republican candidate.
For its part, the dollar continued to strengthen its exchange rate against the main currencies, after the United States Federal Reserve opted last week to reduce interest rates by a quarter of a point..
Specifically, The euro saw its exchange rate fall this Monday to 1.0650 ‘greenbacks’, 2.57% below that registered before the US elections and extending its fall so far this year against the dollar to 2.71%.
New regulatory approach
Trump’s clear victory last week has spurred the sector euphoriawhich is preparing for the arrival of a “golden age” for digital assets, as pointed out by Alex Thorn, research director at Galaxy Digital, for whom it is likely that cryptocurrencies in the United States will experience a renewed regulatory focus, with new favorable majorities in both houses of Congress and in the White House.
“The oppressive headwinds that prevented the progress of the industry and increased legal bills “Over the last four years they have declined, and the cryptocurrency industry is now going downwind in the world’s largest capital market,” he says.
Along similar lines, Simon Peters, analyst at the eToro platform, maintains that if the US adopts bitcoin as strategic reserve asset, “This could act as a massive tailwind” for its price, taking it “well into six figures” and could cause other countries and nations to accelerate their own bitcoin treasury strategy “for fear of missing out,” providing a additional boost to the price of bitcoin.
On the other hand, Eric Demuth, co-founder and CEO of Bitpanda, pointed out after Trump’s victory that the rise of bitcoin towards a new all-time high is a clear sign of the change that the financial ecosystem is experiencing and considered it likely that in the coming years the cryptocurrency will reach new records.
In his opinion, the result of the elections in the United States “will significantly influence the future of the crypto sector”, since, regardless of the winner, a more robust regulatory framework is anticipated for the industry.
For his part, Matt Simpson, market analyst at StoneX Financial, commented to the BBC that “if the Trump administration deregulates cryptocurrencies, It is difficult to see how it will not be positive for the sector“, although he warns that the price “remains vulnerable to unpleasant liquidations along the way.”
The founder of the cryptocurrency investment firm DACM, Richard Galvin, explained to Bloomberg that, in his opinion, an important part of the institutional market reduced risk exposure in the run-up to the elections «and now it is re-entering after Trump’s victory, which creates significant buying pressure; “This is likely to continue for some time.”
However, in statements to the ‘Financial Times’ David Yermack, a finance professor at New York University’s Stern School of Business, tempered optimism by warning that “Trump has made some wild promises during the election campaign. Peror when you hear him actually talk about digital currency, you have no idea what it is».
