Crypto hype
Donald Trump fuels Bitcoin rally – currency at record high
Donald Trump will become the new US President in January. Bitcoin is already climbing to new highs. This is due to several decisions and statements made by Trump.
Around a month before Donald Trump takes office as US President, Bitcoin is on a real rally. The digital currency managed to break above the $107,000 mark for the first time earlier this week. Most recently it fell back slightly and was worth $101,715.
Observers see Trump’s recent statements that he is thinking about a strategic Bitcoin reserve in the USA as well as several personnel decisions by the US President-elect, who will begin his second term in office on January 20, 2025, as a driving force.
Bitcoin has been in an upward trend for two years now, taking the price from less than $20,000 to six-digit highs. But in the past few weeks, since Trump’s election, the currency has increased significantly again – the price has since risen by around half. Trump is considered a proponent of cryptocurrencies and the US government under Trump is expected to pursue crypto-friendly policies.
Donald Trump is considering a strategic Bitcoin reserve
Trump’s statements last week on CNBC fit in with this. There he had said: “We are going to do something big with cryptocurrencies because we don’t want China or anyone else to overtake us.” When asked about a possible cryptocurrency reserve – similar to the strategic oil reserve – he replied: “Yes, I think so.”
The Republican had also made personnel decisions that underlined his affinity for digital currencies: He recently appointed former Paypal manager David Sacks as representative for cryptocurrencies and artificial intelligence in the White House. Sacks is also considered a friend of Tesla founder and Trump advisor Elon Musk. He also wants to appoint Washington lawyer Paul Atkins as head of the Securities and Exchange Commission, who is also considered a supporter of digital currencies.
When it was announced at the beginning of the month that Atkins would head the stock exchange supervisory authority, Bitcoin jumped above the $100,000 mark – and then it continued to rise.
Trump and his personnel policy are probably not the only ones fueling interest in cryptocurrencies, as the Reuters agency analyzes. The ongoing price rise also underlines the growing global interest in decentralized financial instruments – and also the increasing acceptance of Bitcoin as an investment and payment method.
Sources: “”, “” / with material from Reuters and dpa
Source: Stern
