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Bitcoin hit new high as US election results came in

ended 06. November 2024

Bitcoin passed $75,000 overnight as it looked increasingly likely that Donald Trump, who had promised to make America the world's Bitcoin superpower, would take back the White House. In light of this, is now the time for investors to look more seriously at cryptocurrency as an investment? Experts have shared their thoughts on what the Trump victory will mean for cryptocurrencies and crypto investment in general.

7 responses from the Newspage community

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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As the electoral map increasingly tilted in Trump's favour, investors flocked to Bitcoin in a digital gold rush, and the cryptocurrency market has responded with unbridled enthusiasm. The second Trump presidency will create a more favourable regulatory environment, potentially driving renewed institutional demand, as Trump aims to transform the US into a cryptocurrency leader. Additionally, its supporters argue that the currency is an attractive hedge against inflation and a store of value in times of economic uncertainty due to its independence from central banks and government fiscal policy. However, with bucketloads of economic uncertainty still on the horizon, there is substantial downside risk at these lofty heights.
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David Belle
Founder and Trader at Fink Money
Event risks will be cleared and volatility is expected to decrease. Many investors have been overly cautious, holding protective positions against market drops. These positions may become unnecessary and be closed out, leading to buying pressure in the market. If the market starts to rise, investors who haven't fully participated might rush to buy in, fearing they'll miss out on gains. What is key is that Trump is good for markets in general; this is not specific to crypto. What we have seen is an elevated volatility complex over the last few months. All that has been required is for the downside hedges to be taken off (they have) and for upside buying to continue, and for other participants now to chase the market!
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Chris Barry
Director at Thomas Legal
Trump made a serious commitment during his election campaign to not pursue or implement a Central Bank Digital Currency (CBDC) and to allow individuals to be self-custodians of Bitcoin. This paves the way for Bitcoin to continue to be the leading digital currency, and as such, this bullish news has been reflected in today’s price. Bitcoin remains one of the top-performing asset classes over the past 10 years on average, and usually, as Bitcoin rises, some large-cap Alt Coins usually follow suit. Crypto cannot be ignored and should be considered a hedge in any balanced portfolio.
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Simon Bridgland
Director at Charwin Private Clients
Donald Trump pulling off what's likely one of the most audacious comebacks in history doesn't automatically mean he can successfully build a house of cards by adopting Bitcoin and making America the Bitcoin superpower he envisions. The rug could so easily be pulled from under him if he tries. If he goes all in on Bitcoin, will the near-mythical currency disruptor, Satoshi Nakamoto, finally appear for all to see, potentially becoming the most powerful and wealthiest person ever? If Satoshi or whoever he/she really is decided to cash in their entire Bitcoin stash, it would wipe out the currency's value completely. After all, the team that worked on Bitcoin could be described as anarchists by more conservative minds.
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Prem Raja
Head of Trading Floor at Currencies 4 You
The consensus has been that a Trump Presidency would be supportive to Bitcoin and crypto currencies as a whole. The reaction on BTC alone this morning has shown that cryptocurrencies are still in a bull market after hitting all-time highs earlier this morning. The "Trump Trade" across various markets is set to continue and crypto will benefit from a more supportive regulatory environment from a Trump Presidency, it seems the target of $100k per Bitcoin is very much in sight, however, I would exercise caution as the market has been strong throughout the year since the ETF launch, but I would suggest that dips are to be bought in this market environment.
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Faisal Sheikh
Managing Director at Monmouth Capital
Trump's expected win as the results started to come in gave a boost to Bitcoin as he is perceived to be more friendly to crypto. But Bitcoin was already clearly here to stay as an asset class. Some exposure to it directly or indirectly makes sense.
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Graham Cox
Director at Bridging Hub
Blockchain technology is here to stay. Whether crypto will last remains to be seen. But Trump will likely embrace it, as the US dollar is under threat as the reserve currency of choice. Control over crypto would provide a nice insurance policy.