Bitcoin Soars 28% To Record High After Trump’s US Election Win
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Bitcoin has surged to an all-time high, jumping 28% to close at $88,701 on Monday, following Donald Trump’s victory in the United States presidential election last week.
The digital currency’s meteoric rise has sparked a wave of optimism across global crypto markets, with Bitcoin’s market capitalization climbing to $1.76 trillion, a 27.91% increase from the $1.37 trillion recorded just days earlier.
The surge is attributed to expectations that Trump’s second term will usher in a more crypto-friendly regulatory environment. Despite his initial skepticism towards cryptocurrencies, Trump’s campaign promises have reassured investors.
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At a major Bitcoin conference in Nashville, Trump pledged to make the US the ‘crypto capital of the planet’ by keeping the crypto market largely unregulated and reducing energy costs for cryptocurrency mining.
Financial analysts are predicting that the rally could push Bitcoin to $100,000 by year-end. “We are seeing a repeat of what happened during Trump’s first term, where crypto prices surged, driven by tax cuts and an expansionary fiscal policy,” said Oladayo Adenubi, a financial analyst.
He added that the Biden administration’s stricter stance on crypto had caused market stagnation, further highlighting the contrast in policies.
The positive sentiment surrounding Trump’s pro-business stance has not been confined to Bitcoin.
Other financial markets have also seen increased activity, including equities in emerging markets like Nigeria, as investors react to the expected benefits of a more business-friendly US administration.
“In the wake of Trump’s win, traders are optimistic about a favorable environment for digital assets,” said Bidemi Oke, CEO of FlashChange. “We are witnessing a shift in market confidence, not only in Bitcoin but also in other financial sectors.”
The effects of the US election also reverberated in traditional markets. The Federal Reserve cut benchmark interest rates for the second time this year, with Chairman Jerome Powell signaling the possibility of further cuts in December. The US rate reduction is expected to make US bonds less attractive, prompting increased capital flows into emerging markets, including Nigeria.
“The rate cuts by the US Fed make Nigerian assets more appealing due to higher yields, boosting interest in Nigerian debt instruments,” said Oluwaseun Magreola, head of Investment Management at STL Asset Management.
