{"id":363223,"date":"2025-01-31T03:20:12","date_gmt":"2025-01-30T21:50:12","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=363223"},"modified":"2025-01-31T03:20:12","modified_gmt":"2025-01-30T21:50:12","slug":"heres-why-bitcoin-is-pumping-in-anticipation-of-a-trump-presidency-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/heres-why-bitcoin-is-pumping-in-anticipation-of-a-trump-presidency-crypto-news\/","title":{"rendered":"Here’s Why Bitcoin Is Pumping in Anticipation of a Trump Presidency – Crypto News"},"content":{"rendered":"

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It can be hard to make sense of the price of Bitcoin, which has swung wildly throughout its history. But in the aftermath of Donald Trump\u2019s presidential victory in the United States, it\u2019s reached unprecedented highs.<\/p>\n

Last weekend, it surged past\u00a0US$80,000<\/a>\u00a0(A$122,492) for the first time. Then, on Tuesday, it briefly flirted with the\u00a0US$90,000<\/a>\u00a0threshold.<\/p>\n

Many other cryptocurrencies also saw a\u00a0significant boost<\/a>.<\/p>\n

In Trump, the crypto community sees a powerful new friend.\u00a0Speaking<\/a>\u00a0at a major Bitcoin conference in Nashville in July, he promised to create a friendlier business environment if re-elected:<\/p>\n

\u201cWe will have regulations, but from now on the rules will be written by people who love your industry, not hate your industry,\u201d Trump said.<\/p>\n

So, are things really looking up for crypto? Many of Trump\u2019s plans have caused excitement in the sector \u2013 but there\u2019s still good reason to be cautious.<\/p>\n

Less red tape, more crypto<\/h2>\n

Trump has long been a\u00a0strong supporter<\/a>\u00a0of government deregulation \u2013 favouring less intervention in many areas of the economy.<\/p>\n

That could reduce regulatory pressure on cryptocurrencies and open the door for more rapid growth and innovation within the industry.<\/p>\n

Overt government support could also attract more institutional investors by creating a favourable environment for digital assets.<\/p>\n

Trump has flagged a wide range of pro-crypto policies, including building a government bitcoin\u00a0stockpile<\/a>, preventing the government from selling its cryptocurrency holdings, and even using cryptocurrency to\u00a0address the national debt<\/a>.<\/p>\n

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I would like to wish our great Bitcoiners a Happy 16th Anniversary of Satoshi\u2019s White Paper. We will end Kamala\u2019s war on crypto, & Bitcoin will be MADE IN THE USA! VOTE TRUMP! #Bitcoin<\/a> #FreeRossDayOne<\/a><\/p>\n

\u2014 Donald J. Trump (@realDonaldTrump) October 31, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Furthering his pro-bitcoin stance, he\u2019s also previously\u00a0voiced opposition<\/a>\u00a0to \u201ccentral bank digital currencies\u201d, or CBDCs.<\/p>\n

CBDCs are a relatively new digital form of money \u2013 and the US doesn\u2019t have one yet. However, unlike decentralized cryptocurrencies such as bitcoin, the value of a CBDC is determined by its issuing country\u2019s central bank.<\/p>\n

Trump\u2019s\u00a0previous criticisms<\/a>\u00a0of the US Federal Reserve have resonated with many cryptocurrency supporters who have advocated for decentralized financial systems.<\/p>\n

A volatile US dollar<\/h2>\n

A Trump presidency could lead to substantial US dollar volatility against major currencies.<\/p>\n

A cornerstone policy of Trump\u2019s re-election campaign has been to\u00a0impose tariffs<\/a>\u00a0of 10\u201320% on all imports to the US, and 60% on imports from China.<\/p>\n

New or escalated tariffs could lead to trade tensions, impacting currency markets. This would likely strengthen the dollar temporarily, as domestic goods become more expensive.<\/p>\n

But such uncertainty could also drive market speculation and fluctuations in the dollar.<\/p>\n

If the dollar falls, some investors looking for alternatives may turn to cryptocurrencies as a\u00a0hedge against inflation<\/a>\u00a0or currency devaluation.<\/p>\n

Geopolitical risk<\/h2>\n

Trump\u2019s presidency could bring\u00a0increased geopolitical<\/a>\u00a0and domestic political tension. Is cryptocurrency a safe haven in such times? Some proponents have previously touted the asset class as a kind of \u201cdigital gold\u201d.<\/p>\n

On some occasions during Trump\u2019s first presidency, it may appear to have acted like one.<\/p>\n

In 2019, bitcoin\u2019s price surged as\u00a0US\u2013China trade tensions escalated<\/a>. It also\u00a0spiked briefly<\/a>\u00a0in early 2020 when Iran struck two US military bases in retaliation for the killing of Iranian General Qassem Soleimani.<\/p>\n

Such a reputation may influence investor behavior. However, previous research has\u00a0challenged<\/a>\u00a0the idea that Bitcoin acts as a safe haven, finding its price declined under heightened financial uncertainty.<\/p>\n

Other research<\/a>\u00a0has found that bitcoin and fellow cryptocurrency Ethereum are not safe havens from many international equity markets. When included in a portfolio, they added to downside risk.<\/p>\n

Is the euphoria justified?<\/h2>\n

The euphoria in the crypto market following Trump\u2019s victory may be understandable. His support for digital currency could benefit investors and industry leaders seeking fewer regulations.<\/p>\n

However, these markets remain inherently volatile. Less regulation could amplify this characteristic even further.<\/p>\n

If Trump\u2019s deregulation of cryptocurrency leads to increased speculation by investors, it could make the crypto market even more susceptible to bubbles and crashes. Global markets could have a rough ride ahead of them.<\/p>\n

This article is republished from\u00a0The Conversation<\/a>\u00a0under a Creative Commons license.<\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

It can be hard to make sense of the price of Bitcoin, which has swung wildly throughout its history. But in the aftermath of Donald Trump\u2019s presidential victory in the United States, it\u2019s reached unprecedented highs. Last weekend, it surged past\u00a0US$80,000\u00a0(A$122,492) for the first time. Then, on Tuesday, it briefly flirted with the\u00a0US$90,000\u00a0threshold. Many other […]<\/p>\n","protected":false},"author":2,"featured_media":363231,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[245,239,243,242,244,202,184,241,240,189],"class_list":["post-363223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nft","tag-azuki","tag-board-ape","tag-erc115","tag-erc721","tag-metamask","tag-nft","tag-nft-technology","tag-opensea","tag-sbt","tag-soul-bound-token"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/363223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=363223"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/363223\/revisions"}],"predecessor-version":[{"id":363235,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/363223\/revisions\/363235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/363231"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=363223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=363223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=363223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}