Table of Contents:
The current context of Bitcoin
Bitcoin, the most well-known cryptocurrency in the world, has recently reached new all-time highs, exceeding 75,000 dollars. This increase in value occurred in conjunction with the re-election of Donald Trump, an event that aroused great enthusiasm among investors. But what are the reasons for this correlation between politics and the cryptocurrency market
?
Trump’s promises and the future of cryptocurrencies
During his election campaign, Donald Trump expressed his intention to make the United States “the world capital of Bitcoin and cryptocurrencies.” This statement generated positive expectations in the sector, fueling optimism among investors.
In addition, there is talk of a possible creation of a ‘national strategic reserve’ of Bitcoin, an idea that could further stimulate interest in this cryptocurrency.
The role of halving and ETFs
Another factor contributing to the rise of Bitcoin is the imminent ‘halving’ event, scheduled for 2024. This event halves the supply of new Bitcoins, creating a scarcity that has historically led to an increase in the value of the asset. In addition, Bitcoin index funds (ETFs), introduced at the beginning of the year, have already raised 69.28 billion dollars, representing about 5% of Bitcoin in circulation. This growing demand could push the price further upwards
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The experts’ forecasts
According to some analysts, if Bitcoin were to close the week above 73,000 dollars, this could act as a catalyst for a new rally. Adrian Fritz, Head of Research at 21Shares, pointed out that a growing number of recent investors have already made significant gains, which could encourage new investments. In this scenario, it wouldn’t be surprising to see Bitcoin approach or even exceed the $80,000 mark
.
Conclusions on the future of Bitcoin
In summary, the re-election of Donald Trump could have a significant impact on the cryptocurrency market, in particular Bitcoin. Its political promises, combined with technical events such as the halving and increased demand through ETFs, could lead to a further increase in the value of the cryptocurrency. Investors should remain vigilant and ready to seize opportunities that may present themselves in this environment of
growing euphoria.
