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Trump's Potential Appointment of a "Crypto Tsar" Sends Bitcoin Soaring Past $95,000

Blockchain 2024-11-21 04:48:27 Source:

Trump's Potential Appointment of a "Crypto Tsar" Sends Bitcoin Soaring Past $95,000The surge in Bitcoin's price following Donald Trump's election victory is no coincidence. Bloomberg, citing sources familiar with the matter, recently reported that President-elect Trump's team is considering creating a White House position dedicated to cryptocurrency policy and is actively vetting candidates

Trump's Potential Appointment of a "Crypto Tsar" Sends Bitcoin Soaring Past $95,000

The surge in Bitcoin's price following Donald Trump's election victory is no coincidence. Bloomberg, citing sources familiar with the matter, recently reported that President-elect Trump's team is considering creating a White House position dedicated to cryptocurrency policy and is actively vetting candidates. This news immediately sent Bitcoin's price skyrocketing, pushing it towards a new all-time high of over $95,000.

This newly created role would lead a small team responsible for coordinating communication with Congress, the White House, and various cryptocurrency regulatory agencies. While the sources haven't confirmed whether this would be a senior White House position, the role is expected to be dubbed the "Crypto Tsar," overseeing federal cryptocurrency policy and industry regulation.

Trump

If established, this would be the first White House position specifically focused on cryptocurrency, highlighting the burgeoning crypto industry's influence on the incoming administration. Following the announcement, Bitcoin maintained a roughly 2% gain during the midday trading session in the US stock market, holding steady above $94,000. Notably, Bitcoin had already been setting record highs before this news broke. On Tuesday, media reports revealed that Trump's Trump Media & Technology Group Corp (DJT) was poised to acquire Bakkt, with Trump committing to retaining his 53% stake in DJT. This fueled Bitcoin's initial breakthrough of $94,000. CoinMarketCap data shows Bitcoin briefly surpassed $94,900, nearing $95,000, on Wednesday morning, marking a second consecutive all-time high, although it later saw some pullback. Despite this, Bitcoin's price is still up nearly 40% in the last month.

It's noteworthy that the majority of Bitcoin's gains over the past month occurred after the US midterm elections. On November 6th, the day after the election, Bitcoin stabilized above $70,000, gaining over $20,000 in just two weeks.

During his campaign, Trump repeatedly expressed support for Bitcoin, promising measures including: making the US the first country to list Bitcoin as a strategic reserve asset; firing the current SEC chair, whom he deemed hostile to the cryptocurrency industry; establishing a Bitcoin and cryptocurrency presidential advisory council; and encouraging power plants to increase electricity supply to meet Bitcoin mining demands.

Trump's pledges, combined with his "small government" philosophy, are considered significant drivers of Bitcoin's price increase. Many investors believe that unlike the "big government" and expansionary fiscal policies advocated by Modern Monetary Theory (MMT), a Trump administration might favor reduced government intervention and spending. Bitcoin, as a decentralized asset, could thus benefit.

However, not everyone shares the optimistic view of Trump's impact on the cryptocurrency industry. Some analysts remain cautious. Veteran market columnist James Mackintosh wrote that Bitcoin's largely unregulated nature could lead to capital flight from Bitcoin to other cryptocurrencies if regulation is loosened. Moreover, there's uncertainty surrounding whether Trump will deliver on his promises.

Some argue that the so-called "Trump trade"the market's expectation that Trump will adapt to Wall Street's preferencesmight be wishful thinking. Part of the recent Bitcoin price surge is attributable to market anticipation that Trump's policies will prioritize market responsiveness and avoid overly aggressive strategies.

Nevertheless, economists warn that overenthusiastic investors are driving up asset prices, creating a risk of market liquidation.

In conclusion, the potential shift in cryptocurrency policy under a Trump administration is significantly impacting the cryptocurrency market, particularly Bitcoin's price. While the market holds optimistic expectations for Trump's policies, investors should remain vigilant, closely monitoring policy changes and market risks to avoid blindly chasing price increases. The potential creation of a "Crypto Tsar" will undoubtedly have a profound impact on the future direction and regulation of the cryptocurrency industry, although its ultimate effect remains to be seen. The volatility of Bitcoin's price reflects the market's complex reaction to this potential change, encompassing both positive expectations and latent risks. The cryptocurrency market will continue to be influenced by complex political and economic factors, demanding cautious engagement from investors. How the Trump administration's policies will ultimately affect the cryptocurrency market remains a crucial issue requiring continued observation. This event has far-reaching implications not only for the digital asset industry but also for the global financial market, warranting close monitoring from global investors. Currently, the market is highly volatile and investors need to closely monitor policy developments and make prudent decisions. In a market environment where information veracity is questionable, investors must remain rational, avoid blindly following trends, rationally assess risks, and invest cautiously.

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