Bitcoin Reaches Fresh Highs Above $104,900 as Trump’s Presidency Boosts Market
Market Overview
Bitcoin has broken to fresh highs above $104,900 as this year’s rally continues to benefit from several tailwinds, including President-elect Donald Trump’s impact on markets. The asset is up 3.5% on the day following a new record price of $105,004. It’s now up more than 140% in a year and 15% higher over a 30-day period, according to CoinGecko data.
Trump’s Presidency and Cryptocurrency
The broader crypto market saw a significant uplift following Trump’s presidential victory in early November. While questions remain about whether a slew of new proposed policies slated for digital assets will become a reality, others are confident recent developments are fomenting momentum.
“Campaign promises to make the US ‘the crypto capital of the planet’ might be viewed as political posturing,” Lucas Schweiger, Digital Asset Research Manager at banking group Sygnum, told Decrypt. “But the Crypto Advisory Council proposal, along with rumors of Trump meeting several heavyweights of the crypto industry, such as Coinbase CEO Brian Armstrong, sends a signal that the new administration will pay more serious attention to the crypto market and look to understand its potential opportunities for the US economy.”
Potential Policy Changes
Specific proposals, including changes to tax policy for Bitcoin miners and profits on certain tokens, must gain approval from both Congress and the Senate, both currently controlled by Republican majorities.
The appointment of former PayPal COO David Sacks as Trump’s “White House AI & Crypto Czar” earlier this month, as well as several major firms jockeying for advisory council seats, all point towards “gathering momentum,” Schweiger added.
Federal Reserve Rate Cuts
This week, members of the Federal Reserve will gather for this year’s last Federal Open Market Committee, where it is expected to slash rates by a further 25 basis points to between 425 and 450, according to the CME’s FedWatch Tool. Interest rate cuts have continued to prove to be a boon for risk assets, including crypto, this year as borrowing becomes cheaper and encourages investment.
Altcoins and Meme Coins
Sentiment for next year’s continuation in higher prices also benefits other altcoins and meme coins, which have surged in the wake of Trump’s victory on November 5. SUI and Polkadot (DOT) are today’s highest performers in the top 20 cryptos by market capitalization, up 7% and 5.8%, respectively.
Conclusion
The rally in Bitcoin and other cryptocurrencies shows no signs of slowing down, with President-elect Trump’s presidency providing a significant boost to the market. As the new administration begins to shape its policy agenda, the potential for further growth in the crypto space remains strong.
FAQs
Q: What is the current price of Bitcoin?
A: Bitcoin is currently trading above $104,900.
Q: What is driving the rally in Bitcoin?
A: Several factors are contributing to the rally, including President-elect Trump’s impact on markets, interest rate cuts by the Federal Reserve, and the potential for new policies to support the growth of digital assets.
Q: What are some potential policy changes that could affect the crypto market?
A: Proposals include changes to tax policy for Bitcoin miners and profits on certain tokens, and the establishment of a Crypto Advisory Council to promote the growth of digital assets.
Q: Who is Lucas Schweiger, and what is his perspective on the crypto market?
A: Lucas Schweiger is the Digital Asset Research Manager at banking group Sygnum. He believes that recent developments are fomenting momentum in the crypto market, including the appointment of David Sacks as Trump’s “White House AI & Crypto Czar” and the potential for new policies to support the growth of digital assets.
