How high could Bitcoin go after Trump’s post-election surge?
We’re Back: Bitcoin Hits Record High, Analysts Predict $120,000
The cryptocurrency market has been on a tear since President-elect Trump won the election last week, with Bitcoin hitting an all-time high of $89,000 yesterday. CNBC technology reporter McKenzie Sigalos joins us to break down the surge and what it means for investors.
Why Trump’s Election is Boosting Bitcoin
Much of the record surge in the crypto market comes down to investors pricing in a future where Donald Trump delivers on his campaign promises to the industry. Specifically, Trump has vowed to make the US the crypto capital of the world, launch a national crypto stockpile, and implement policy moves that would make it easier for crypto companies to scale their business and open the door for Wall Street to invest.
Analysts Predict a Tripling of the Crypto Market
Standard Chartered sees the total market cap of the crypto market tripling to $1 trillion under Trump. As for Bitcoin specifically, analysts are predicting it could reach as high as $120,000 this year.
A Rally in Meme Coins
Meanwhile, meme coins like Dogecoin, which has surged 150% in the last week, are also benefiting from the increased sentiment. The coin’s value has been boosted by rumors that Elon Musk has been advising the incoming president.
Trump’s Promise to Lower Regulations
Trump has also promised to lower regulations on cryptocurrency, which could have a significant impact on the industry. This includes firing the chairman of the US Securities and Exchange Commission, who has been tough on the industry, and rolling back a rule that stood in the way of Big Wall Street Banks like Goldman Sachs being able to hold Bitcoin on their balance sheets.
Impact on the Economy
If the president-elect follows through on these crypto promises, the digital currencies could stay high, having a significant impact on the day-to-day economy. With spot Bitcoin ETFs making it easier for individual investors to get exposure to cryptocurrency, prices going up is a real boost to a long-term investment strategy.
A National Crypto Stockpile
A bill introduced by a pro-Bitcoin senator in Wyoming would make it possible for the US government to use treasury funds to buy more Bitcoin, with the aim of helping to pay down the national debt through a strategic Bitcoin Reserve.
Stay Tuned for Further Updates
We’ll continue to follow this story and bring you updates as more information becomes available.
