Bitcoin has reached record highs amidst speculation on Donald Trump’s victory in the US presidential election, with many viewing him as a candidate supportive of cryptocurrencies.
The digital currency hit $75,005.08 on Wednesday morning, surpassing its previous peak of $73,797.98 achieved in March.
“Bitcoin’s price seems to be closely tied to President Trump’s standing in the polls and betting markets,” commented AJ Bell analyst Russ Mould ahead of the U.S. presidential election.
Investors believe that a Republican win could lead to increased demand for digital currencies,” he added.
Although Trump previously criticized cryptocurrencies as scams during his tenure, he has since shifted his position and even introduced his own platform for the currency.
Nigel Green from DeVere also stated before the election that “President Trump’s victory could propel the world’s first and largest cryptocurrency to new heights.”
Green added, “If re-elected, there would likely be a focus on deregulation, tax breaks, and economic policies favoring investments like Bitcoin.”
President Trump has vowed to make the United States the “Bitcoin and cryptocurrency capital of the world” and appoint Elon Musk to oversee a comprehensive audit of government spending.
Trump’s corporate tax cuts during his previous term boosted market liquidity and encouraged investment in high-growth assets such as cryptocurrencies.
In September, Trump announced the launch of a digital currency platform named World Liberty Financial with his son and other entrepreneurs, although initial sales were sluggish.
World Liberty Financial provides a lending and borrowing service for cryptocurrencies, akin to platforms like Aave.
Since their inception, cryptocurrencies have made headlines for extreme volatility and the collapse of major industry players, notably the FTX exchange platform.
Leading up to the election, Trump made a purchase at a New York restaurant, touting it as a “historic transaction” and possibly becoming the first former president to use Bitcoin for a transaction.
“Who wants a hamburger?” Trump exclaimed to his followers in September, shortly after the platform’s launch.
Read more of the Guardian’s 2024 US election coverage
Source: www.theguardian.com
