Bitcoin, Ethereum, Dogecoin Rise on Optimism About New Trump Presidency – Grayscale Bitcoin Mini Trust (BTC) Undivided Fractional Beneficial Interest Common Units (ARCA:BTC)
The cryptocurrency market saw a significant rise on Saturday. Bitcoin Bitcoin/US Dollar, Ethereum ETH/USD and Dogecoin Doji/USD All of them saw a rise in value, with traders anticipating the possibility of this happening “Trump bump” with the next second Donald Trump presidency.
What happened: The cryptocurrency market roared to life on the last trading day before the Trump administration took office. Bitcoin led the rally, rising 2.81% and touching roughly $104,987 per coin. Ethereum (ETH -0.22%) and Dogecoin (DOGE -0.16%) also saw gains.
There is widespread speculation that President-elect Trump will prioritize cryptocurrencies, with rumors of an executive order on his first day in office. This could include appointing a more crypto-friendly chair to the Securities and Exchange Commission.
However, traders are advised to be cautious about the speed of policy changes in Washington. While changes in industry rules may require congressional action, this does not necessarily translate into direct gains in value for meme coins and blockchain tokens.
Alternatively, this could lead to assets such as stocks and bonds being traded on the blockchain and further business formation taking place on the blockchain.
Despite the current speculation-driven rally, the market may face disappointment if the news does not meet high expectations.
The Federal Reserve cannot make bitcoin or any other cryptocurrency a reserve currency without action from Congress, which seems unlikely given the current political climate.
Today’s market action is largely driven by speculation that Trump will be beneficial to the cryptocurrency market. However, similar speculation in 2021 led to a market crash in 2022, warning investors against purchasing tokens based solely on speculation.
Why does it matter?: The possibility of a “Trump shock” in the cryptocurrency market is high, given the rumors about the President-elect’s focus on this sector.
However, the history of speculation-driven highs and crashes in the cryptocurrency market is a warning to investors. The potential for policy changes under new administration could have far-reaching implications for the industry, but these changes are uncertain and may take some time to implement.
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