Bitcoin has crossed the $100,000 mark for the first time in its history amid expectations of measures to support cryptocurrencies by Republican Donald Trump's administration following his victory in the US presidential election.
Points of attention
- Bitcoin's price surpassed $100,000 for the first time after Trump's victory, signaling a new era for cryptocurrencies.
- Trump's administration and regulatory changes are expected to attract new investments from asset managers, fueling the growth of cryptocurrencies.
- Supporters see Bitcoin's six-figure value as validation of its modern role as a store of value, while critics raise concerns about its speculative nature and lack of fundamental value.
- While Bitcoin soared to record highs, the global market showed little correlation, indicating the unique position of cryptocurrencies as separate assets.
- Analysts foresee a promising outlook for cryptocurrencies under Trump's administration, with expectations of favorable conditions for further price growth.
What is known about the wild rise in the price of Bitcoin after Trump's victory in the US elections
It is noted that during Thursday, December 5, the price of bitcoin increased by 6.1% and currently amounts to 103.8 thousand dollars.
After Donald Trump's victory in the US presidential election in October, the price of Bitcoin increased by 50%.
In his statements, Trump promised to appoint cryptocurrency advocate Paul Atkins as head of the Securities and Exchange Commission.
In this position, Atkins is to replace Gary Gensler, who has actively opposed the expansion of cryptocurrencies in the United States.
Literally a few hours after Trump's statement, the price of bitcoin exceeded the $100,000 mark.
What is expected of Trump in the cryptocurrency market
According to Crypto.com CEO Chris Marchalek, the new price for Bitcoin is a historic event in the field of cryptocurrencies.
According to analysts, the Trump administration will create even more favorable conditions for the growth of the price of cryptocurrencies.
Regulatory changes in the US cryptocurrency market are expected to attract new investment from large asset managers.
Supporters of the cryptocurrency see the six-figure number as confirmation of controversial claims that bitcoin is a modern means of saving and hedging inflation risk. According to critics, the digital asset has no fundamental value and is too prone to speculative whims, the journalists of the publication emphasize.
At the same time, the rapid growth of the price of bitcoin did not affect other assets on the global market. Among other things, shares of the world's largest companies and futures on American shares do not show growth, the yield on treasury bonds has increased, and the dollar index has practically not changed.
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