Lots of speculation and new forecast for Bitcoin which has been pumped up to almost eighty thousand dollars!
So what’s going on? What has pushed BTC past the $76,000 mark? Well, one word: Trump. Chiefly the re-election of Donald Trump as president, who is widely viewed as much more pro-crypto than vice-president, Kamala Harris, and a lot less inclined towards financial guard rails. Trump has repeatedly voiced his support for crypto assets—promising to make the US “the bitcoin superpower of the world”—and there are rumours he may replace the chair of the US Securities and Exchange Commission, Gary Gensler, who has been heavily focused on reining-in the crypto industry during his tenure. Crypto stocks surged 7.5% higher in the wake of the election.
Many traditional stocks also performed well in the hours after Trump’s victory. According to US-based CEO of infrastructure at Capital Advisors, Jay Hatfield, it was part of a broader market reaction to the re-election of a president who defines himself as a businessman first (and a politician second).
“The combination of a Fed easing cycle, AI-driven technology boom and a pro-business administration is extremely bullish for the stock market,” Hatfield said in a statement. In fact, in the weeks leading up to the election, and a possible return to a Trump Administration, BTC rose to $72,100 for the first time since June 2024. This was largely a result of increased capital inflows for spot Bitcoin ETFs.
This isn’t the first significant surge event for BTC in 2024. On Tuesday, March 5, BTC surged after the newly approved spot bitcoin ETFs experienced record daily inflows and the amount of bitcoin held on centralised exchanges fell to a new low. The demand for bitcoin, largely driven by the new ETFs, was outstripping the supply of BTC available in the market, creating a situation where the price was surging to bring sellers into the market to meet demand.
This rise was an extension of the run that began in October last year when news regarding BlackRock’s plans for a BTC Exchange Traded Fund (ETF) pushed the price to new highs for 2023. In early January, 11 spot BTC ETFs were approved to trade in the US for the first time in history, marking a significant milestone for the crypto market and solidifying bitcoin as a legitimate investment in the eyes of institutions.
Is the Crypto Winter Truly Over?
While the enthusiasm surrounding the approval of the BTC ETFs, and the impact of Trump’s re-election is undeniable, it’s crucial to remember the crypto industry still faces headwinds from the SEC and similar regulatory bodies worldwide.
The digital currency landscape is still navigating an unclear regulatory environment, trying to establish a balance between innovation and consumer protection. Recent lawsuits by the SEC against major cryptocurrency exchanges, such as Binance and Coinbase, are a stark reminder of the sector’s ongoing regulatory challenges—and there is no early signs of how the SEC will operate in a Trump Administration.
Moreover, the broader macroeconomic landscape cannot be ignored. Global markets are grappling with the challenge of taming inflation—which may well return under Trump’s economic plan, especially his tariffs. These factors may put pressure on all asset classes, not just cryptocurrencies. The increasing cost of borrowing and the decreasing value of money can act as deterrents to new investors and could potentially impact the overall growth trajectory of the crypto market, as investors park their money in so-called “safe havens”.
Be careful if you invest in cryptocurrency. The market has had its fair share of hikes and collapses, and many say there is no real value behind such an investment. Exchange Traded Funds should be treated with much caution, as often if one crypto fund crashes then the others can also come tumbling down.
It is a bit like Humpty Dumpty sat on a wall, Humpty Dumpty had a great fall. All the king’s horses and all the king’s men, couldn’t put Humpty together again.
Take care!
Prof. Carl Boniface
Elon Musk must have persuaded Trump that cryptocurrency is the future:
Trump alone has made cryptocurrency jump leaps and bounds. One man has the power to change the world. Trump must be the trump card for cryptocurrency growth LOL
Here is a video that confirms Elon Musk's involvement:
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