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After a long silence, bitcoin is back in the spotlight. Inevitable, considering that from the beginning of November to today they have also grown by 38 percent and reached the new historical high of 93 thousand dollars, before investors decided to cash in on part of the gains causing a slight decline (at the time of writing the value is around 89 thousand dollars).
In reality, it was for some time that – without attracting too much attention – bitcoin and other cryptocurrencies had once again demonstrated their ability to recover from even the worst falls.
The speculative euphoria that had characterized the Covid period was in fact followed by the collapse of the NFT market and web3 (the new evolution of the blockchain and cryptocurrency-based network, already forgotten), and above all by the bankruptcy of FTX ( the third largest cryptocurrency trading platform in the world) and the arrest of its founder Sam Bankman-Fried. A sequence of events that had caused bitcoin to plummet by 75 percent during 2022, going from 64 thousand to 16 thousand dollars.
After hitting bottom, the rise began: at the end of 2023, bitcoins had already returned to 42 thousand dollars, while in March 2024 they reached 73 thousand dollars, before losing momentum and falling by a few percentage points.
Since November, the situation began to evolve rapidly, dragging the oldest of the cryptocurrencies to the aforementioned new historical record of 93 thousand dollars. The fact that the electoral victory of Donald Trump and his right-hand man Elon Musk also occurred in the first days of November is obviously not a coincidence, to the point that insiders refer to this phase of growth with the term “Trump Bump”. (Trump’s push), which led the entire cryptocurrency sector to exceed the value of 3 trillion dollars: levels that had not been seen for exactly three years.
What links Trump’s election and the growth of cryptocurrencies? Long gone are the days of Trump he considered bitcoins “a scam against the dollar”. Today The Donald even has a (negligible) digital currency that bears his name and another named in honor of the MAGA movement. Trump also trades in Nft dedicated to himself (the Trump Cards) and has above all become the darling of the crypto world, to the point of appearing during the Bitcoin 2024 conference and on that occasion making a series of promises that electrified the sector.
The approach
Although bitcoin was born with the aim of overturning the monetary policy of governments, today its followers – more interested in maximizing profits than in the ideology behind the blockchain – toast the announcements of Trump, who has pledged to transform United States in the “crypto-capital of the world”, has promised to replace the current and hostile president of the SEC (the equivalent of the Italian Consob) with a figure “who will build the future instead of hindering it” and has even raised the possibility of create one «Bitcoin strategic reserve».
An incredibly risky idea – given that the ups and downs of cryptocurrencies are the financial equivalent of a roller coaster – but which is already gaining ground, to the point that the Pennsylvania parliament has introduced the first legislative proposal which aims to create a strategic state reserve in bitcoin and Wyoming could soon do the same. How much would the value of bitcoin grow if these proposals actually came to fruition? What if the oldest cryptocurrency really gave life to a sort of digital Fort Knox?
If that’s not enough, the head of Trump’s transition team, Howard Lutnick, is a big supporter of digital currencies and may bring some of his crypto-enthusiast friends into the newly elected US president’s economic team, while the House of Representatives also it is populated by “crypto-bros” like Bernie Moreno, an entrepreneur in the sector elected to the Senate in Ohio.
The chaos
Beyond Trump’s promises and the hopes of the environment, what we have seen in recent weeks confirms once again the unlikely partnership that has been created between a newly elected president of the United States who until recently despised cryptocurrencies and a world who has always despised any institution.
It is likely that Trump will be considered – from a perspective that we could define as “accelerationist” – the agent of chaos destined to undermine the system from the right. And perhaps allow, voluntarily or otherwise, that anarcho-liberal revolution dreamed of by cryptocurrency gurus, in which the state is cleared away and replaced with the pure law of the market (as Milei aims to do in Argentina).
Musk’s support
And then, of course, there’s Elon Musk. The richest man in the world is a huge supporter of cryptocurrencies, to the point of naming his nascent government efficiency department Doge, after the digital currency he has historically supported (for no particular reason, given that it is a clone of bitcoin as there are thousands) and which, following Trump’s victory, tripled its value. For crypto-enthusiasts, Musk’s arrival in Trump’s court can only be a further cause for joy.
The enthusiasm of the sector seems to have also infected institutional investors, who have been carefully following bitcoin and other cryptocurrencies for years and who have been the main protagonists of the great rise – and equally impressive fall – of 2021. To gauge the interest of large investment funds, we are now looking at ETFs relating to bitcoins (instruments that follow their performance without the burden of purchasing and storing them). In the first half of November alone, bitcoin ETFs attracted over four billion dollars, or 15 percent of the total invested since these instruments were launched in January 2024.
“People clearly want more exposure to cryptocurrencies following Trump’s victory and generally want more exposure to riskier assets,” he said. explained Citi Group analyst David Glass at Reuters.
The risk of tariffs
What if instead Trump does not keep the promises made to the crypto world and, on the contrary, his economic policies end up penalizing bitcoin and other blockchain-based currencies? The tariffs that Trump is preparing to impose could indeed revive inflation and lead to an increase in interest rates, which are historically correlated with a decline in cryptocurrencies, which vice versa benefit when interest rates fall.
Until he takes office in January, Donald Trump’s policies will remain only on paper, while investor enthusiasm has already had notable effects on the market and predict to Coindesk analysts that bitcoin could (and the conditional is more necessary than ever) have further sustained growth ahead of them.
What is certain is that a boost to cryptocurrencies was long overdue, after the launch of the aforementioned ETFs in January, after the rise in March and the halving in April (the moment in which, every four years, the reward for miners who certify bitcoin transactions, which is historically followed by a sustained increase in value). In short, to ignite the world of cryptocurrencies, all that was needed was a further spark, which turned out to be Trump’s victory.
If what has already happened in the past is repeated, the next few months will first be characterized by growth in bitcoin and then, once the slowdown of the main cryptocurrency has begun, it will be the turn of the various “alt-coins”, starting with Ethereum. It is still too early to know whether we are at the beginning of a new speculative bubble or whether it will turn out to be just a flare-up. Much will also depend on Trump’s moves: after winning the votes of the cryptosphere, will he follow up on his promises or will he forget about them as soon as he crosses the threshold of the White House?
Was the rise in Bitcoin’s value following Trump’s election due to his policies or other market factors?
## World Today News Interview: Bitcoin’s Resurgence and the Trump Factor
**Welcome! Today, we’re discussing the recent surge in Bitcoin’s value and the unexpected role played by Donald Trump. Joining me are two experts:**
**[Guest 1 Name], a financial analyst specializing in cryptocurrency markets, and [Guest 2 Name], a political commentator with expertise in economic policy.**
Let’s dive right in.
**Section 1: The Bitcoin Renaissance**
*[Guest 1 Name], Bitcoin has rebounded significantly after a turbulent few years. What factors have contributed to this recent surge, and is it sustainable?*
*[Guest 2 Name], Trump’s victory seems to have coincided with this upward trend. Do you see any direct link between his policies and the renewed interest in Bitcoin?*
** Section 2: The Trump Bump: Coincidence or Catalyst?**
*[Guest 1 Name], Trump has previously expressed skepticism towards cryptocurrencies. How do you explain his apparent shift in stance and its potential impact on the market?*
*[Guest 2 Name], Trump has pledged to make the U.S. a “crypto capital.” Can he deliver on this promise, and what could the consequences be for the economy?*
*[Guest 1 Name], Some are concerned about potential risks associated with close ties between government and the crypto market, particularly with the idea of a Bitcoin strategic reserve. What are your thoughts?*
**Section 3: The Elon Musk Effect**
*[Guest 2 Name], Elon Musk has long been a vocal advocate for cryptocurrencies. How does his support for Bitcoin and Dogecoin influence investor confidence?*
*[Guest 1 Name], Institutional investors are showing renewed interest in Bitcoin through ETFs. Does this indicate a shift towards mainstream acceptance of cryptocurrencies?*
**Section 4: The Road Ahead: Bubble or Breakthrough?**
*[Guest 1 Name], Predictors are divided on the future of Bitcoin. Where do you see the market heading in the next few months, and what factors could influence its trajectory?*
*[Guest 2 Name], What are the potential long-term implications of a more integrated relationship between cryptocurrencies and traditional finance? Could this mark a fundamental shift in the global financial system?*
*[Guest 1 Name], Would you say that we are witnessing a new era for cryptocurrencies, or are we simply experiencing another speculative bubble?*
**Closing Remarks:**
Thank you both for your insightful analysis. It’s clear that the intersection of politics, technology, and finance creates a complex and dynamic landscape. Only time will tell what the true impact of Trump’s presidency and the rise
