Bitcoin reached a new all-time high, touching the $99,000 barrier and continuing an escalation that is writing the history of the cryptocurrency sector. According to Reutersthe recent rally was triggered by expectations of a more favorable regulatory environment linked to Donald Trump’s election victory. The tycoon promised a change of direction in the management of digital currency policies in the United States.
The figures are taking on increasingly significant contours: since the beginning of the year, the cryptocurrency created by Satoshi Nakamoto has doubled in value, registering a total increase of 130%. In the seventeen days after Trump’s election victory, cryptocurrency rose approximately 45%, reaching around $99,380 and marking a growth of 1% in just 24 hours on November 22.
This rise makes bitcoin one of the main protagonists of the so-called ‘Trump trades‘, that is, those assets favored or influenced by the policies planned by the new administration. In this sense, the Republican’s imminent return to the White House is representing a turning point for the cryptocurrency market. During his election campaign, he promised to transform the United States into “the capital of cryptocurrencies,” stating that he was willing to accumulate a national reserve of bitcoins.
Possible scenarios
At the same time, the future departure of the current chairman of the Securities and Exchange Commission (SEC), Gary Gensler, is considered a positive sign for investors in the sector. Under his leadership, the federal body had launched a series of legal actions against major cryptocurrency exchanges, including Coinbase, Kraken and Binance, following alleged violations of registration rules. With the announcement of his resignation, Operators in the sector imagine that as of January there could be a relaxation of control policies, which would favor a more open and dynamic market.
Without a doubt, another factor that contributed to the momentum of bitcoin during 2024 was the SEC’s authorization of the NASDAQ (National Association of Securities Dealers Automated Quotation); the world’s second largest electronic stock exchange, to trade shares of BlackRock’s Bitcoin Spot Exchange Traded Fund (ETF). A step that consolidated the credibility of the digital currency in the eyes of the most skeptical savers: “The longer it survives, the more seriously it is taken,” stressed Shane Oliver, economist and strategist at the financial services company AMP Limited in Sydney. Australia.
In the European context, Massimo Di Rosa, head of retail broker Bitpanda for Italy, described this moment as “a turning point in the best sense of the word.” “Positive developments are coming into effect in recent years, such as growing retail adoption, regulation of cryptocurrencies in the West, interest rate cuts by central banks and the integration of cryptocurrencies into traditional financial systems and bank portfolios”. Di Rosa adds that the market is impatient and prices are rising: “Bitcoin reaching $100,000 is not just a number.”
Under the leadership of its new CEO, Paolo Ardoino, the cryptocurrency company is investing large sums in an attempt to enter the AI market.
Other cryptocurrencies on the rise
The impact not only influences bitcoin. Other cryptocurrencies also benefit from the tycoon’s new victory. Trump Media and Technology Group, owner of the social network Truth, is negotiating the acquisition of Bakkt, the futures and digital assets exchange platform founded in 2018 by Intercontinental Exchange. According to Financial Times and complementary information from the Italian agency ANSAthe value of the operation is not yet defined, despite the fact that the capitalization of the active platform in the cryptocurrency sector is around $150 million.
In the two weeks after Trump’s election, other major digital currencies increased their values: Ethereum rose 36.7%, from $2,427 to $3,317; Dogecoin showed an increase of 143.7%, from 0.16 to 0.39 dollars, thanks to the sponsorship of Tesla founder Elon Musk and the announcement of the future government efficiency department. Finally, the Tether asset went from 0.91 to 0.96 dollars, with a rise of 5.5%.
Article originally published in WIRED Italy. Adapted by Alondra Flores.
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