Photo: depositphotos
On Wednesday morning, bitcoin broke through the historic $75,000 mark for the first time, reaching $75,005 at around 03:08 GMT. The digital currency’s rise of almost 8% was driven by expectations that cryptocurrency regulation would be eased if Donald Trump wins the US presidential election. Although the price subsequently dropped slightly, trading around $74,725, bitcoin continues to be the focus of investor attention, CNBC reports .
The value of bitcoin began to rise rapidly immediately after the first results of the US election were released, with Trump gaining a significant lead in key states.
Crypto market expert Fredrick Collins of VeloData notes that bitcoin is now one of the main assets that are actively traded under the influence of news about the US election results. According to him, “it is likely that bitcoin will continue to grow if the prospects of Trump’s victory remain.”
Trump is a supporter of cryptocurrencies and deregulation
During his election campaign, Donald Trump promised to make the US the “world leader” in cryptocurrencies by proposing to ease the regulatory framework. This position is in contrast to the policy of the Joe Biden administration, which actively advocated for tighter regulation in the digital asset sector. Although Vice President Kamala Harris tried to strike a balance by partially distancing herself from strict regulation, many cryptocurrency holders perceived Biden’s policy as potentially unfavourable for the market.
According to deVere analyst Nigel Green, Trump’s return to power could be marked by large-scale deregulation and tax incentives that will boost prices of alternative assets such as bitcoin. “During Trump’s first mandate, we saw significant corporate tax cuts, which provided additional liquidity for markets and investments in high-risk assets,” Greene said.
Market expectations and future prospects
Financial analysts are closely monitoring the cryptocurrency market, as the US political course could have a significant impact on the further dynamics of bitcoin. If Trump’s victory becomes a reality, it could boost the cryptocurrency market even further amid predictions of looser regulations and potential economic incentives for investors.
For Ukraine, where digital assets are becoming increasingly popular among investors, the steady growth of bitcoin could have positive consequences, stimulating interest in cryptocurrencies and expanding opportunities for financial investment in an unstable economy.
