In a significant turn of events following the US 2024 election, Bitcoin prices surged past $75,000 for the first time, marking a new all-time high. On Wednesday, Bitcoin jumped by more than 10%. It reflects optimism after Donald Trump was projected to win the US presidential election. The surge in Bitcoin prices, often called “Trump trades.” It highlights growing confidence in the crypto market, fueled by the Republican candidate’s pro-Bitcoin stance.
Trump’s Election Victory and Bitcoin’s Response
In the November US election, former President Donald Trump beat Democratic Vice President Kamala Harris. Trump won in key battleground states like Pennsylvania, North Carolina, and Georgia, bringing him to 267 electoral votes, three short of the 270 needed to win the White House. The Republican Party’s victory, the presidential victory, and the party’s taking control of the Senate will further boost financial markets.
Bitcoin prices shot up to an all-time high of $75,120, a rise of about 8.63%, with the immediate reaction in the crypto space clear. Traders betting on Trump’s policies, many of which are believed to be positive for Bitcoin and other cryptocurrencies, were primarily responsible for this price jump.
Trump: The First Bitcoin US President
What’s most remarkable about Trump’s victory is that he is now the first US president to support Bitcoin publicly. During his campaign, Trump was a strong ally of Bitcoin and other cryptocurrencies. His views on decentralized finance match those of the crypto community, which have been financial freedom and financial sovereignty. Trump’s pro-Bitcoin rhetoric has welcomed a change of pace for Bitcoin advocates who have fought against previous administrations.
Trump pledged to protect Bitcoin miners in the United States, which is a major part of Bitcoin’s growth. He also suggested establishing a Bitcoin Strategic Reserve, making Bitcoin a proper asset in the national financial system. Crypto fans have been excited by his proposals, which they say are a sign the government is beginning to embrace cryptocurrencies.
Key Commitments Made by Trump to the Crypto Community
During his campaign, Trump made several bold promises that set him apart from other candidates. These commitments have resonated strongly within the Bitcoin community and are seen as a major reason behind the surge in Bitcoin prices:
1. Support for Bitcoin Miners
Trump has pledged to defend Bitcoin miners in the US, a group struggling with regulatory issues. His administration’s policies have often supported deregulation, and its support for energy independence will surely please miners. Bitcoin miners depend on stable and predictable energy policies. On the other hand, Trump’s focus on maintaining such an environment can help fix the US as a leading global Bitcoin mining hub.
2. Bitcoin Strategic Reserve
One of Trump’s most radical ideas is the establishment of a Bitcoin Strategic Reserve. This would be similar to the US government’s gold reserves and protect against inflation and other instabilities. Establishing a Bitcoin reserve has other advantages, such as extending Bitcoin’s acceptance as a store of value, such as “digital gold.” It would also assist Bitcoin in conforming more to traditional financial systems. As a result, it will become even more appealing as an asset to investors and institutions.
3. Pardon for Ross Ulbricht
Ross Ulbricht, who created the Silk Road, is a polarizing figure in the Bitcoin community. Ulbricht was convicted for owning and operating an online black market for the sale of prohibited products. Some in the crypto community have claimed that he deserves no less than double life imprisonment and that Ulbricht’s actions were not in support of the principles of Bitcoin. Trump’s statement about pardoning Ulbricht has caused a lot of support from the Bitcoin community, where the case of Ulbricht is symbolic of freedom and justice reform.
4. Opposition to Central Bank Digital Currencies (CBDCs)
Central bank digital currencies (CBDCs) have lately emerged as one of the most-discussed areas of fintech as governments worldwide have considered the possibility of launching their digital currencies. Still, the majority of the Bitcoin community believes that CBDCs are a threat to freedom and privacy. Trump has even publicly come out to support a policy that would see the US not adopt a CBDC by stating that it would cause the government to have too much control over the citizens’ financial lives. On this issue, he has become even more popular with Bitcoin supporters, who believe that CBDCs threaten the decentralized finance model.
Trump’s continued interaction with the crypto community
The president has not limited himself to mere political promises but has gone further to interact with the Bitcoin community. In September 2024, he also went to PubKey, a Bitcoin-themed bar in New York City, and bought the supporters burgers using the cryptocurrency. This act continued his attempts to engage the crypto community. His reception could have been more polarized, but it proved his readiness to interact with Bitcoin enthusiasts, which other politicians have been reluctant to do.
Trump has also connected himself with Bitcoin in his commercial activities. Though operating through his company, World Liberty Financial, Trump is said to be involved in creating a stablecoin. Some people call this stablecoin, which would be anchored to the US dollar and intended to be safer than other forms of digital currency. The stablecoin is not out yet, but it can strengthen Trump’s support of cryptocurrencies.
What is the Implication of this for the Future of Bitcoin?
Crypto folks now have a president who isn’t only indifferent to Bitcoin but keen on its expansion and technology integration into the global economy. His support for Bitcoin mining, his promise to create a Bitcoin Strategic Reserve, and his opposition to CBDCs are all seen as steps in the right direction for the broader adoption of cryptocurrency.
Despite the positive sentiment after Trump’s win in the USA, investors should know that the cryptocurrency market is volatile. Bitcoin crossing the $75,000 mark is good news. However, regarding Trump’s policies, it is still too early to speak about their further development. As such, the crypto market will look for any regulation changes and the consequences of Trump’s planned stablecoin project.
Conclusion
In particular, the increase in Bitcoin’s price after Donald Trump’s victory in the US election can be attributed to the increasing optimism of crypto supporters. The crypto community has considered Trump a friend since he supports Bitcoin and its miners, pledged to create a Bitcoin Strategic Reserve, and opposes CBDCs. As to how these promises will be implemented, it is yet to be seen. However, Trump is here, and he is a president, which is a first for Bitcoin. It could very well be the beginning of more good things to come in the following years. The future of Bitcoin has never looked so bright as the world continues to observe.
