What could a Trump presidency mean for Bitcoin?
BITCOIN is back in the spotlight as President-elect Donald Trump prepares to take office.
But how might a Trump presidency and a potential Elon Musk partnership impact bitcoin? Discover how global events influence bitcoin's price and what this new political landscape could mean for crypto.
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Donald Trump's return to the White House, whether you view it positively or negatively, injects unpredictability into global markets.
For Bitcoin, this could spark growing interest as people look into alternative assets, especially with Trump's support for crypto and his connection to Elon Musk.
You can also explore and gain insights into responsibly.
But remember, Bitcoin is not a guaranteed win, it’s a high-risk, high-volatility asset. Read on to find out more.
What is crypto?
Crypto is a digital asset and decentralised form of money, meaning it's not issued or directly controlled by an authority, like a central bank.
The first and most famous example is bitcoin (BTC), launched in 2009.
Unlike the cash in your wallet, bitcoin exists purely online as a digital token, and is created and stored on a secure online ledger called a blockchain.
Its appeal lies in the control it gives you, cutting out banks and middlemen.
But, that freedom comes with a trade-off - the unpredictable volatility of the crypto market.
Trump's crypto-friendly stance
Trump's earlier scepticism about crypto, viewing it as a rival to the U.S. dollar, seems to be a thing of the past.
Since his 2024 campaign, the President-elect has expressed more favourable views on Bitcoin, noticeably impacting the market.
His change of heart has sparked investor confidence, driving Bitcoin to record-breaking highs of $100,000 in December 2024.
Trump’s embrace of crypto, including talk of creating a "strategic bitcoin reserve," has sparked hope for a more crypto-friendly U.S. stance under his new administration.
The Musk Factor
Another key factor behind bitcoin's recent surge is the influence of Tesla owner Elon Musk, the world’s richest man and a vocal supporter of crypto.
A remark from Musk, whether in favour or against, has been known to send prices rocketing or plummeting within minutes.
While Musk was initially wary of the crypto market, he has become a strong advocate in recent years, championing it as a tool to revolutionise finance and decentralise power.
Now, with Musk’s endorsement of Trump, crypto enthusiasts are feeling optimistic, believing this partnership could signal positive developments ahead.
A Trump-Musk Partnership
As Trump takes office again, eyes are on his relationship with Elon Musk, with the duo potentially shifting U.S. policy to favour crypto.
Trump’s pro-business, deregulatory stance could boost the crypto market, especially with his crypto-friendly pick, Paul Atkins, set to chair the Securities and Exchange Commission (SEC).
This may result in a more relaxed regulatory environment for crypto, encouraging sector growth.
Musk’s influence in tech and energy, along with his alignment with President Trump could further amplify support for Bitcoin.
A Trump-Musk collaboration might signal a future where crypto like bitcoin gains legitimacy, and where bitcoin becomes more integrated into economic strategies.
The ups and downs of Bitcoin
Being the first crypto on the scene, bitcoin has seen its share of dramatic highs and lows, riding the uncharted waters of a brand-new market.
Its first major milestone came when it broke the $1,000 barrier, grabbing the attention of early adopters.
Fast forward four years and bitcoin’s value skyrocketed tenfold, surpassing $10,000 in 2017.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.