Bitcoin surges to new heights amid Trump's crypto promises
A historical milestone is breaking for bitcoin. The most popular cryptocurrency's rate has reached almost $89,600 CAD, surpassing the values from the COVID-19 pandemic era. The bitcoin rate has jumped 32% since Donald Trump won the presidential election in the USA.
Bitcoin is growing swiftly. On November 10, around 8 AM EST, the cryptocurrency's rate broke the $80,000 CAD barrier, and just two days later it reached almost $90,000 CAD. On Tuesday, November 12, the Bitcoin rate reached $89,590 CAD.
As we reported the increased demand for this cryptocurrency is thanks to Donald Trump, the president-elect, who promised to make the United States the "crypto capital of the world" during his election campaign.
Trump promised more favorable regulations regarding cryptocurrencies. The Republican Party is tightening its control over Congress, which increases the chances of passing Trump's solutions. Other promises include creating strategic bitcoin reserves and supporting domestic token mining to make the USA the cryptocurrency capital of the planet.
Bloomberg notes that after Trump's victory, the overall value of digital assets rose to $3.1 trillion CAD.
Bitcoin in "beast mode"
Christ Weston, head of research at Pepperstone Group, a company offering forex trading services, assessed that bitcoin is in "beast mode." As he said, investors are now contemplating whether they can still catch this speeding train or if they should wait for slight declines.
According to some analysts, in January, before Donald Trump's inauguration, bitcoin might reach a value of $100,000 CAD. Besides the Republican victory, the rate increase is also supported by the Federal Reserve's decision to cut interest rates by 25 basis points. According to Thursday's Fed decision, interest rates in the US will now range from 4.5 to 4.75%.
However, the recent increases in the most popular cryptocurrency indicate that surpassing the $100,000 CAD threshold is possible even this year. "Bitcoin has risen around 110% in 2024, helped by strong demand for dedicated US ETF funds and the Fed's interest rate cuts. The token's growth surpasses returns from global stocks and gold. Trading in BlackRock Inc.'s $39 billion CAD iShares Bitcoin Trust fund reached a record level on Monday," Bloomberg points out.
The agency notes that companies dealing with cryptocurrencies have engaged in the election campaign and supported candidates who are expected to favour the industry. Donald Trump was a major critic of bitcoin in the past, but he has changed his mind.
In July 2019, he wrote on platform X that he is not a fan of cryptocurrencies because they are not money, and their value is very volatile and "based on nothing." In 2024, a shift occurred. In the election campaign, Trump began to ingratiate himself with the crypto industry with controversial promises. Read more about it here:
