Bitcoin reached $80,000. Why is Trump supporting cryptocurrency?
On Sunday, Bitcoin surpassed $80,000 for the first time. Before Tuesday’s US presidential election, the biggest cryptocurrency in the world soared. It also had a dramatic increase on election night when it became certain that Donald Trump would win, and it has continued to rise in the days after his victory.
This year, Bitcoin has risen 80%, outpacing the S&P 500’s still-powerful 25.7% gain. Bitcoin was trading slightly below the $80,000 mark on Sunday morning after momentarily surpassing it.
Trump’s win, according to the cryptocurrency community, is encouraging for Bitcoin and other virtual currencies. In contrast to the Biden administration, which has attempted to control cryptocurrency, Trump has now fully embraced cryptocurrency, despite his previous skepticism about it, claiming that it “was based on thin air.”
Trump’s financial interest in cryptocurrency is a major factor in his recent shift in position. Trump and his kids launched World Liberty Financial, a new cryptocurrency company, in September.
When he unveiled World Liberty Financial on September 16, Trump remarked on the cryptocurrency business, “It’s very young and very growing.” “I do think it’s real.”
In comparison, the Biden administration has shown much greater skepticism of cryptocurrency. In one of his first statements in his then-new position, Securities and Exchange Commission Chairman Gary Gensler stated in June 2021 that cryptocurrency was “ripe with fraud, scams, and abuses.”
The chairman of Gensler’s SEC stated that he thought the business was at least partly composed of securities that were trading unlawfully, and the agency filed lawsuits against cryptocurrency companies and attempted to regulate it. The SEC also joined forces with other authorities, such as the Department of Justice, to target cryptocurrency scammers, including the notorious CEO of FTX, Sam Bankman-Fried.
People can now include cryptocurrency exposure in their retirement plans thanks to Gensler’s slow-walking approval of a bitcoin exchange-traded fund. Cryptocurrencies briefly surged after Gensler’s X account was compromised in January 2024 and falsely announced that the eagerly anticipated Bitcoin ETF was now open for business.
In August, Trump stated that he wants cryptocurrencies to be “mined, minted, and made in the USA” and that they might “define the future.” As a national security precaution, the president-elect also suggested investing in and buying Bitcoin directly, creating a strategic national stockpile similar to America’s strategic petroleum reserve.
One of Trump’s most well-known and devoted supporters, Elon Musk, is a well-known cryptocurrency bull. Dogecoin, Musk’s preferred cryptocurrency, rose more than 20% on Sunday after rising all week.