Athira Sethu
Kochi, 22 November 2024
Bitcoin is approaching its first $100,000 mark post Doland trump’s reelection as the next President of the United States. The price has risen because people believe that Donald Trump becoming U.S. president will lead to favourable policies for cryptocurrencies.
On Thursday, the price of Bitcoin was between $98,000 and $99,000, briefly reaching $99,073. This year, Bitcoin’s value more than doubled and it has gone up around 40% since Trump’s election.
The current President-Elect has been a crypto-supportive. As part of his campaign promises, he promised to make the U.S. the “crypto capital of the planet” and even recommended buying Bitcoin for the country. Crypto investors believe that his presidency will make it easier for people to invest in Bitcoin, especially after he has replaced Gary Gensler, the SEC head who has been strict about crypto.
In September, Trump also introduced a new crypto business called World Liberty Financial, which shows interest in digital assets. This has increased confidence among the investors. Another strong Trump supporter is Elon Musk, who is also a supporter of cryptocurrencies.
Bitcoin is currently gaining popularity after 16 years. Its price drop below $16,000 in late 2022. The approval of Bitcoin exchange-traded funds in January went a long way in propelling the value of Bitcoin northward.
Since the election, more than $4 billion has been invested in Bitcoin ETFs. A new option for Bitcoin ETFs from BlackRock opened up this week, and many investors are betting it will continue to go up.
However, some concerns are still related to Bitcoin. Two years ago, scandals such as the FTX exchange collapse and the arrest of its founder Sam Bankman-Fried surfaced. Another concern is that Bitcoin mining consumes a great amount of energy, resulting in environmental damage. Moreover, there are concerns related to crypto crimes. Last year, cryptocurrency worth more than $24 billion was transferred to illegal wallets connected with various scams and terrorism.
