Mint Primer Two to tango: The return of Bitcoins Trump
Subscribe to enjoy similar stories. As Donald Trump prepares to take charge as president, the talk of the town once again is cryptocurrencies, with analysts saying Bitcoin prices may cross $100,000 soon. Mint explains the connection between the cryptocurrency surge and Trump’s return to power.
Donald Trump’s victory is propelling Bitcoin to new highs almost every day, with the cryptocurrency breaching the $81,000 mark for the first time on Monday. Since the beginning of the year Bitcoin has returned almost 93%, besting gold and equities, on the back of Trump’s pro-digital assets stance. During his campaign Trump promised to build a national cryptocurrency stockpile, slash regulatory burdens and mine more cryptocurrencies in America.
The US Federal Reserve’s recent interest rate cuts have made it cheaper to borrow money and are likely to sustain the demand for Bitcoin going forward. Read more: Trump 2.0: How to make your portfolio great again Trump has not always been a fan of cryptocurrencies, even calling it a “scam" during his last term. His tune changed after he received the backing of X and Tesla owner Elon Musk, who is a well-known digital currency enthusiast.
Musk has publicly promoted Bitcoin as a tool of “financial freedom" during Trump’s rallies. Electric car maker Tesla, the fourth largest holder of Bitcoin among US public companies, has recently sold approximately $765 million worth of Bitcoin to unknown wallets. Tesla invested around $1.5 billion in Bitcoin in 2021 but sold most of its holdings when prices crashed in 2022.
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