Bitcoin spiked to record highs in Asian domain as traders expect a optimistic result of Donald Trump in the presidential elections in the United States of America. The price of the virtual currency was up 7% to $75,060, the first time it had climbed so high since it hit $63,512 in march 2021. Market opinion was expecting that a Trump victory could only boost cryptocurrency liberalization.
Bitcoin Breaks Records as Trump Comeback Hints at Crypto-Friendly Future
Promoters found Trump’s possible comeback beneficial to cryptocurrencies given his government’s past approach to tightly regulating digital assets. It is within this context that analysts argue that there maybe enhanced investment in cryptocurrencies given that this have been accorded a reduction in the risks that come with regulation.
According to Edison Research, Trump was leading in 15 states while his Democratic counterpart Kamala Harris was leading in seven states and Washington, D.C. Even as the final result was unclear, financial markets wasted no time – futures markets for US shares and the S&P 500 even saw an initial bounce during the Asian trading session as traders switched from counting on Trump’s defeat to preparing for his win.
The confidence of traders in Bitcoin is in line with positive financial expectations on a Republican presidency attributed to pro-free market policies. This is actually a contrasting sentiment to the worries on the tightening up of scrutiny which is poised to affect both the crypto and the tech markets in case of Harris.
The Bitcoin rally is an example of how the currency has shifted from previously being an indicator of investor confidence in political events to an indicator of an event. This is if the market will continue to be sensitive to potential regulatory changes that the outcome of the election may bring to pass, the celebration may provide new record highs or moderated gains for Bitcoin.
Crypto Markets Eye Regulatory Relief as Trump Win Sparks Innovation Hopes
Matthew Dibb, chief investment officer of Astronaut Capital, pointed out a major reversal in perception about how the U.S. presidential election will affect crypto. Dibb has suggested that people are more optimistically anticipating Trump’s victory expecting the agency to ease the policies of the U.S Securities and Exchange Commission or SEC on cryptos to facilitate crypto’s development and trading.
Dibb suggested that the crypto market believed that a Democratic triumph could slow down its development, especially in the short runs. He pointed out that the current trends could impel some much tighter rules that might give a final touch, or ‘a nail in the coffin,’ to developing new near-term efforts in the field while maybe harboring more staying power over the long term.
Market participants are attaching significant positive weights to SEC attitudes towards digital assets, with many believing that the Trump team can be expected to pull for deregulation. This view is in line with expectations that Republican may create a more favorable climate for blockchain and cryptocurrency funding.
The anticipation of the relaxation of the legal rules has stimulated interest in the development of the crypto market, for individuals who believe that the cryptocurrency is the future of a digital economy that is not limited to creating innovations in the financial sphere. Reducing the number of regulatory choke points could open the flood gates to a greater number of wild and daring cryptostartups.
In a nut shell, Dibb’s comments aptly captures the sentiment in the market where everyone is waiting for the cue to either bang or bolster the crypto business. Based on the election results, the general public, and investors in particular, still have concerns of a ripple effect on the way SEC deal with cryptocurrencies.
Ether Climbs 7.5%, But Still Faces a Long Way to 2021 Highs
Ether, the second biggest by market capitalization, was up 7.5% and touched $2,593 during recent trading alongside Bitcoin. Even so, it is still a long way off its all-time high of $4,867 reached in January this year and investors remain skeptical about its medium term prospects.
Ether, like Bitcoin, saw an increase in value leap as investors become optimistic of the just concluded U.S presidential election and its aftermath seen as more friendly to cryptocurrencies. This sentiment has led to purchasing across all primary categories of digital assets despite caution by market analysts of swings in the near future.
This means that Ether has not been perceived as a Internet store of value like Bitcoin as its value is directly proportional to DeFi and blockchain projects. banks could experience more advancement if there is a reduction in regulation which is good for Ether.
Ether’s recent price hike may signal increased usage of the Ethereum network, although it remains to be seen whether improvement to the network is an important factor to users. Some analysts believe consistent regulatory backing could see Ether return to its all-time high in 2021 albeit through volatility.
For now, the Ether price can be deemed to be high due to enthusiasm in the generally patriotic crypto market where investors do not hesitate to invest with a view of making some good bucks. Fortunately or unfortunately, as the ongoing regulation situation of ethers becomes clear, it will be interesting to see how Ether performs closer to its record high levels.
