Why is the Rise in Bitcoin being Caused by Trump's Victory?

The value of Bitcoin, the biggest and oldest cryptocurrency, has increased by 30% in the last week. There are other cryptocurrencies in circulation besides it. Dogecoin, a cryptocurrency supported by Trump friend Elon Musk, has increased 152% since Trump's win.

Cryptocurrency functions online without a centralized authority and is a "digital alternative" to fiat money. However, it has also been extremely unstable for a long time and has been subject to government restrictions in a number of countries.

What causes the rise in cryptocurrency following Trump's victory?

According to analysts, investors are being attracted by Trump's use of cryptocurrencies during the presidential campaign and his foray into the cryptocurrency market because they anticipate that the next administration will be crypto-friendly.

In addition to accepting bitcoin donations, Trump made appearances at industry gatherings and pledged to turn the US into "the crypto capital of the planet." Trump and his three sons, Barron, Eric, and Jr.Donald, announced World Liberty Financial, his most recent business venture, in late September. This new business, which was marketed as a decentralized finance (DeFi) money market platform, unveiled a proprietary cryptocurrency called $WLFI.

Although the new venture's specifics are unknown, many pro-crypto fans believe that the incoming Trump administration is endorsing digital currency. Some DeFi industry experts have criticized the act for potential conflicts of interest and the fact that it was started during the 2024 presidential campaign.

Michael Dowling, a professor of finance at Dublin City University Business School, said in a recent interview with Newsweek magazine: "The crypto and DeFi world has already seen a parade of undesirables, so adding Trump to the list couldn't possibly push the needle on popularity or enthusiasm." Remember that the earliest cryptocurrency marketplaces were founded by assisting in the trafficking of drugs.

Is the value of all cryptocurrency increasing?

A rising Bitcoin is raising all cryptocurrencies, just as a rising tide raises all boats. Dogecoin and Ethereum, two more well-known cryptocurrencies, are also rising. Musk, the richest man in the world, a well-known Trump supporter, and a cryptocurrency aficionado, has been especially outspoken about his support for Dogecoin. The following represents the market share of the leading cryptocurrencies:

• Bitcoin (BTC): 59.46%
• Ethereum (ETH): 12.68%
• Tether (USDT): 5.18%
• BNB (BNB): 3.51%
• Solana (SOL): 3.38%

What does the US economy stand to gain from the surge?

The current spike may make the way for additional cryptocurrency investment. The Biden administration choked off cryptocurrency. Trump, who has openly endorsed it, is viewed as a world in which cryptocurrency can flourish with official backing. According to the IMF, the US is a central force that drives global economic growth. Furthermore, the US economy is set to drive global growth through 2024 and 2025.