Athira Sethu
Kochi, 20 November 2024
Bitcoin had just surged to a new record high over $94,000 after it surfaced that the social media company of Donald Trump was in talks to acquire Bakkt, a cryptocurrency trading firm that could revive the hope that the new administration led by Donald Trump shall be friendly towards cryptocurrency than its predecessor.
The most followed cryptocurrency in the world, Bitcoin, has garnered massive appreciation this year. On Wednesday, its price stands at $92,104, up from a record $94,078 on Tuesday.
The Financial Times has reported that according to sources close to the matter, Trump Media and Technology Group, the operator of a social media site called Truth Social, is on the verge of buying Bakkt in an all-stock deal. Bakkt is owned by the Intercontinental Exchange, a parent company also of the New York Stock Exchange.
Market analyst Tony Sycamore attributed the rise of Bitcoin not only to the news about the Trump deal but also to the introduction of Bitcoin options trading at Nasdaq, made possible by the BlackRock Bitcoin ETF.
Cryptocurrency prices tend to be highly volatile and change value frequently. To this end, it becomes quite important that investors are always informed appropriately.
After November 5, when the U.S. elections took place, cryptocurrencies saw a series of price increases since various traders think President-elect Trump will favor digital assets. Many even believe that with his support, there will be fewer regulations, and Bitcoin will be able to regain its strength after several slow months.
The excitement around cryptocurrencies has been growing. As of recent times, the global cryptocurrency market has reached an all-time high of more than $3 trillion, based on CoinGecko data.
According to Chris Weston, head of research at Pepperstone, a leading Australian online broker, there is a strong demand for Bitcoin, and since its price continues to go higher, even more investors may buy in to take advantage of the trend as it rises.
In short, the record rise in Bitcoin is accompanied by market excitement as well as by hopes for a friendlier environment under the new administration toward cryptocurrencies.
