#BabyMarvinf9c7值🉐拥有🈶 The highly anticipated results of the US election are finally out. Just now, Trump announced his victory in the 2024 presidential election. Those who pay attention to the international financial market must have noticed that Bitcoin, which is strongly supported by the "King of Understanding", has been rising all the way. Perhaps after he officially takes office, the various measures that were previously promised to benefit the cryptocurrency market will begin to be implemented. But do you know that there is a love-hate relationship behind Trump's bet on Bitcoin?
01Why Trump supports Bitcoin
Trump was once skeptical of Bitcoin, even calling it a "scam" and worried about its volatility and possible abuse. However, over time, Trump has turned from a hater to a fan, and his attitude towards Bitcoin has taken a 180-degree turn. Since 2022, he has begun to publicly support digital assets, trying to connect with technology-oriented voters and the cryptocurrency community.
Supporting Bitcoin has also become a calling card for Trump. Trump's campaign further positioned him as a pro-cryptocurrency candidate, and his campaign allowed cryptocurrency donations, which was the first time in a major U.S. presidential campaign. His platform promised to make the United States a "cryptocurrency capital," advocating for reducing regulatory barriers and promoting the United States as a global center for Bitcoin mining and encryption innovation.
At the 2024 Bitcoin Conference, the largest annual conference in the cryptocurrency industry, Trump even claimed that if he could return to the White House, he would list Bitcoin as a strategic reserve asset for the United States. The slogan of "Make America Great Again" was just short of being changed to "Make Bitcoin Great Again" by Trump.
Why is Trump so supportive of Bitcoin? Some say he sees the huge potential of digital currency and wants to take advantage of it; others say he is trying to cater to young voters and recover his declining popularity among young people; others say he is trying to counter China's rise in the digital currency field. In the final analysis, there is both political game and real money behind it.
02Bitcoin takes off
Regardless, Trump's attitude has indeed driven the rise of Bitcoin. And this time Trump's successful election as the new president of the United States will also make Bitcoin "take off". Analysts have previously predicted that if Trump wins the election, the price of Bitcoin may rise by about 4% to about $76,000 immediately after the election results are confirmed. In the days after the election, the price of Bitcoin may rise by about 10%.
Such predictions have already come true in part. As Trump leads the electoral votes, the price of Bitcoin has soared from around $68,000 to $75,000 today, an increase of more than 9%.
In fact, this phenomenon of financial asset trends changing with Trump's chances of winning the election or his governing policies is also called "Trump trading." Investors bet that after Trump takes office, he will introduce measures such as relaxing financial regulations, lowering taxes, raising immigration thresholds, and imposing tariffs on imported products, which will benefit the US dollar and push up inflation. Bitcoin has a strong correlation with Trump trading. Similar influences will also affect US stocks, US bonds, gold, etc.
03Should I call?
We need to understand that Bitcoin's price fluctuations are not isolated phenomena, but the result of the combined effects of the global economy, financial policies, market expectations and investor behavior.
Trump's public support has undoubtedly greatly enhanced the market confidence and legitimacy of Bitcoin, and will attract more institutional investors and large financial institutions to enter the Bitcoin market, thereby bringing huge capital inflows in the long run and driving up Bitcoin prices. However, despite Trump's clear support, turning his promises into specific policies and laws requires complex legislative procedures and coordination of interests among multiple parties.
Bitcoin is a highly volatile asset. Its characteristics determine that it still has risks such as uncertainty in the regulatory environment of various countries and technical and security issues. For example, Bitcoin trading has not yet been legalized in my country; for example, hacker attacks, technical loopholes and operational errors may lead to capital losses and market turmoil.
The cryptocurrency market is volatile, and any prediction is risky. What kind of digital currency drama will Trump present? Let's wait and see.
