Bitcoin Crosses $80.000 Mark, Driven by Donald Trump's Return
Bitcoin continues its meteoric rise, crossing the historic threshold of $80.000 on Sunday, a first in the history of cryptocurrency. After having already reached $75.000 last Thursday, the price of Bitcoin seems to be driven by the enthusiasm generated by the re-election of Donald Trump as President of the United States, and his promises to make the United States the world capital of cryptocurrencies.
Since the election results, the leading digital currency by capitalization has recorded an impressive rise, peaking at $80.116 around 13 p.m. (Paris time) this Sunday before falling back slightly. This increase is part of a favorable context for cryptocurrencies, reinforced by the prospects of regulatory easing and favorable tax policies for digital assets, promoted by the Trump administration.
Trump and cryptocurrencies: a favorable policy
Donald Trump campaigned on the idea of putting the United States at the forefront of the cryptocurrency market, promising to make the nation “the bitcoin capital of the world.” This positioning marks a break with the Biden administration, which is seen as favoring strict regulation of the sector. Trump, for his part, is considering initiatives to encourage investment in cryptocurrencies, such as a “strategic national bitcoin stockpile.” Some analysts, such as Nigel Green of deVere, believe that the deregulatory policy advocated by the president-elect could encourage investment in alternative assets such as Bitcoin.
The new president also promised to fire Gary Gensler, the current chairman of the SEC and a staunch advocate for rigorous regulation of financial markets, including cryptocurrencies. At the same time, Donald Trump announced the creation of his own digital currency platform, called “World Liberty Financial,” launched last October.
Alongside Bitcoin’s rise, memecoins, digital currencies often seen as parodies and highly volatile, are also surging. Dogecoin, in particular, backed by Elon Musk, a staunch Trump supporter, has seen its price soar.
A Record Year for Bitcoin
In addition to the influence of US politics, Bitcoin’s rise in 2024 is also due to technical and market factors. The “halving,” an operation that reduces the supply of new bitcoins every four years by halving the rewards of miners, has helped reduce the available supply and support prices. In addition, the introduction of a Bitcoin-linked index fund (ETF) in the United States has allowed investors to participate in the rise of the asset without holding it directly, leading to increased demand for the cryptocurrency. Since their launch in January, Bitcoin-backed ETFs have attracted approximately $68,51 billion, or about 5% of bitcoins in circulation.
In short, Donald Trump's return seems to mark a turning point for Bitcoin, as American deregulation and tax incentive policies could transform the United States into a global hub for cryptocurrencies.
