Investors expect the incoming administration of President-elect Donald Trump to make policies that favor cryptocurrencies. Analysts believe the bitcoin rally will continue.
The price of the cryptocurrency bitcoin crossed the $97,000 mark for the first time on Thursday.
Bitcoin went on a wild rise after the Republicans Donald Trump won the US presidential election in early November.
The value of Bitcoin has increased by almost 30 percent in a couple of weeks. Crypto investors have started to call the phenomenon with the English terms “Trump pump” and “Trump trade”. Loosely translated, they mean Trump pumping and Trump economy.
The acceleration of the price rally is driven by Trump’s pro-bitcoin statements and interest rate cuts by the US Federal Reserve, an estimate that follows the cryptocurrency industry CoinDesk website.
Trump promised during his election campaign that he would make the United States a center for bitcoin mining. He has also hinted that the United States would establish a strategic reserve in which it would collect bitcoins.
At the beginning of the year, the US Securities and Exchange Commission approved Bitcoin ETFs, through which large institutional investors can trade bitcoins in a regulated manner.
For example, the world’s largest asset management company, Blackrock, has started buying billions of dollars worth of bitcoins on behalf of its clients through an ETF.
Investors are waiting for crypto-friendly reforms
Also a billionaire who has become close to Trump Elon Musk has been speaking out for cryptocurrencies for years.
Investors are now expecting that the incoming Trump administration will make a policy with a positive attitude towards cryptocurrencies, which would lead, among other things, to lighter regulation of the industry.
According to CoinDesk’s sources, Trump’s transition team is considering Goody Guillén appointment as the new chairman of the US Securities and Exchange Commission.
Guillén is a partner at law firm BakerHostetler and leads its blockchain team. Blockchain is the technology on which bitcoin’s operation is based.
According to the financial newspaper The Financial Times, Trump’s company is negotiating to buy the cryptocurrency trading platform Bakkt. According to the newspaper, Trump Media and Technology Group is close to closing the deal.
Several analysts and banks estimate that the price of bitcoin could reach as high as $200,000 over the next year, CoinDesk and Forbes tell.
Source: Reuters