Trump's crypto-friendly win drives Bitcoin near the $90,000 mark

Bitcoin is growing rapidly. On November 10, around 8 AM EST, the cryptocurrency broke the $80,000 barrier, and just two days later, it nearly reached $90,000. On Tuesday, November 12, the Bitcoin rate achieved $89,590.

The increased demand for this cryptocurrency is attributed to Donald Trump, the president-elect, who, during his election campaign, promised to make the United States the "crypto capital of the world."

Trump has promised more favorable regulations regarding cryptocurrencies. The Republican Party is tightening its control over Congress, which increases the chances of implementing Trump's solutions. Other promises include creating strategic bitcoin reserves and supporting domestic token mining to position the USA as the cryptocurrency capital of the planet.

Bloomberg notes that after Trump's victory, the overall value of digital assets rose to $3.1 trillion.

Chris Weston, head of research at Pepperstone Group, a company offering forex trading services, assessed that bitcoin is in "beast mode." As he stated, investors are now debating whether they can still catch this speeding train or wait for slight declines.

According to some analysts, bitcoin might reach a value of $100,000 in January, before Donald Trump's inauguration. 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, recent increases in the most popular cryptocurrency indicate that surpassing the $100,000 threshold is possible even this year. "Bitcoin has more than doubled so far in 2024, helped by robust demand for dedicated US exchange-traded funds and interest-rate cuts by the Federal Reserve. The rise in the token, which also scaled fresh records after Tuesday’s US vote, exceeds the returns from investments such as stocks and gold. The ETFs, powered by BlackRock Inc.’s $35 billion iShares Bitcoin Trust, posted a record daily net inflow of almost $1.4 billion on Thursday," Bloomberg points out.

The agency notes that companies involved with cryptocurrencies participated in the election campaign and backed candidates expected to favor the industry. Donald Trump was a major critic of Bitcoin, but he has changed his stance.

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." Yet, in 2024, a shift occurred. Trump began ingratiating himself with the crypto industry during the election campaign through controversial promises.