Bitcoin briefly tops $93,000 on Trump's pro-crypto stance, Fed policy
Fueled by expectations of interest rate cuts and pro-crypto policies from President-elect Donald Trump, Bitcoin hit a new high of over $93,000. The cryptocurrency market remained volatile as investors weighed the sustainability of the rally. Trump's support for crypto, including potential regulatory changes and a strategic Bitcoin reserve, set the market abuzz. However, the feasibility and timeline of these plans remained uncertain.
Bitcoin's value fluctuates amid market speculation
Bitcoin's value briefly crossed $93,000 on the back of expected further interest-rate cuts by the Fed and Trump's pro-crypto stance. The digital asset surged nearly 6% to an all-time high of $93,462 but couldn't hold on to the rise, dropping to $91,175 as of 1:47 PM on Thursday in India. In the past seven days, Bitcoin has surged by over 21%. The broader crypto market swung between gains and losses amid choppy trading.
Trump's pro-Crypto policies fuel Bitcoin's rise
Investors are wondering if Trump's support for digital assets will continue to propel Bitcoin toward $100,000 or trigger profit-taking after a 33% advance since the US election on November 5. US inflation data met analyst projections, prompting traders to ramp up bets on another quarter-point rate cut by the Fed in December. However, Trump's broader platform of tax cuts and protectionist trade tariffs could stoke price pressures in the future.
Trump's crypto-friendly regulatory framework: A closer look
Trump has promised to create a crypto-friendly regulatory framework, a strategic Bitcoin reserve, and make the US the global hub for the industry. This change in tone comes after digital-asset firms invested heavily in election campaigning to push their agenda. However, the questions remain: how feasible are these promises and when will they be implemented? Despite Republicans controlling elected branches, economic/fiscal policy issues may take priority.
Crypto rally impacts financial sector and Bitcoin ETFs
The crypto rally is affecting the financial sector, pushing record trading volumes and inflows at US Bitcoin exchange-traded funds. Software company MicroStrategy Inc., which has embraced Bitcoin on its balance sheet, is pushing a Bloomberg gage for convertible US debt toward its best month this year. This shows how far-reaching the current cryptocurrency market trends are on different facets of the financial industry.
