Trump’s Crypto Bet: How Bitcoin Soared Amidst Political Winds
The prospect of Trump pushing for crypto-friendly policies has sent Bitcoin’s price soaring, with investors and analysts predicting even bigger things ahead. Trump’s outspoken support for Bitcoin and hints at integrating it into the U.S. economy have sparked what some are calling a “crypto renaissance,” making this one of the most talked-about topics in finance.
The Trump Effect: A Crypto Market Boost
Bitcoin’s price has been climbing steadily since the U.S. election, reaching $91,650—close to its record high of $93,000. This surge started earlier in the year with the approval of Bitcoin exchange-traded funds (ETFs), but Trump’s election victory has added extra momentum. His comments about potentially using Bitcoin as part of a national reserve have captured the attention of investors and boosted confidence in the cryptocurrency market.
The news also gave a major boost to companies connected to Trump and crypto. Bakkt, a cryptocurrency exchange reportedly in talks with Trump’s holding company, saw its stock price jump by 160%. Trump Media and Technology Group (TMTG), which owns a stake in Bakkt, also saw its shares rise 17%. These gains reflect growing investor excitement about Trump’s vision for cryptocurrency in America.
Bitcoin as a National Asset: Game-Changer or Speculation?
One of the boldest ideas fueling this rally is the possibility of Bitcoin becoming part of the U.S. Federal Reserve’s reserves. Trump has suggested building a national Bitcoin reserve while scaling back regulations on cryptocurrencies. This policy, supported by Vice President-elect J.D. Vance and tech billionaire Elon Musk, could change the way the government and financial institutions view Bitcoin.
If the Federal Reserve starts buying Bitcoin, it could cement the cryptocurrency’s role as a strategic asset, much like gold. This would likely attract even more institutional investors, as Bitcoin’s reputation would shift from a risky investment to a key part of the U.S. economy.
Financial Times expressed that this idea could redefine how the world views Bitcoin, noting that just a few years ago, there was debate over whether the U.S. might ban Bitcoin, while now it could potentially become an official reserve asset.
From a political perspective, this move aligns with America’s focus on generating wealth through capital markets. With Republicans in control of Congress, Trump has a unique chance to push through crypto-friendly policies that could shape the future of the global economy.
The Ripple Effect: What It Means for Other Cryptos
Bitcoin’s rise has the potential to spark a broader rally in the cryptocurrency market, known as “altcoin season.” When Bitcoin prices climb, investors often take profits and reinvest them in alternative cryptocurrencies like Ethereum and Solana. We last saw this trend in 2021, and it could recur now, particularly for cryptocurrencies that prioritise practical applications such as blockchain infrastructure.
Jeff Dorman, a top investment expert, describes this as America’s “crypto renaissance,” driven by new policies and market dynamics. Meanwhile, German fund manager Hendrik Leber predicts for Handelsblatt that Bitcoin’s price could hit $100,000 soon, thanks to Trump’s pro-crypto stance and speculation about a national Bitcoin reserve.
Scepticism Remains Amid the Hype
Despite the excitement, some experts warn that Bitcoin’s rise may not last forever. Bitcoin has a history of price volatility, with sudden crashes that have wiped out billions of dollars in value. For instance, the collapse of the crypto exchange FTX last year sent Bitcoin plummeting to $16,000, a reminder of the risks involved.
Still, most analysts believe that Bitcoin is in a strong position right now. The price of Bitcoin has remained stable over the past six months due to growing institutional interest and Trump’s crypto-friendly policies.
What’s Next for Bitcoin?
Bitcoin’s future depends on several factors, including Trump’s policies and global economic conditions. Falling interest rates, which make risky assets like Bitcoin more attractive, have already contributed to its rise. However, if interest rates rise again, Bitcoin’s momentum could slow.
Even so, experts remain optimistic. Stijn Vander Straeten, Head of Deutsche Börse subsidiary Crypto Finance, mentions for Handelsblatt that he expects Bitcoin to surpass $100,000 by early 2025. Well-known trader Peter L. Brandt also shares this view, predicting Bitcoin will hit $100,000 by April 2025.
For long-term Bitcoin believers, these predictions are just the beginning. If Bitcoin becomes a core part of U.S. financial policy, its value could climb even higher, potentially reaching millions of dollars per coin. While this might sound like a stretch, it reflects how much confidence some have in Bitcoin’s potential to transform the financial world.
Trump’s Legacy: A Crypto Turning Point
Donald Trump’s embrace of Bitcoin could mark a historic moment for both the cryptocurrency market and U.S. economic policy. By promoting Bitcoin as a key asset, Trump is reshaping the narrative around cryptocurrencies and strengthening America’s role as a leader in financial innovation.
However, this approach isn’t without risks. A change in political leadership could reverse crypto-friendly policies, potentially hurting the market. For now, though, the excitement surrounding Trump’s plans is driving Bitcoin to new heights, with no clear end in sight.
As the Trump administration begins, Bitcoin’s journey will be closely watched. Whether it becomes a cornerstone of America’s financial future or faces new challenges, one thing is certain – Bitcoin’s role in the global economy is growing, and its story is far from over.
