Bitcoin Reaches New Record Surpassing $80,000
Bitcoin surpasses $80,000, driven by optimism about deregulation policies under a possible Republican government and the impact on markets.
Bitcoin has reached a new record of over $80,000, marking a significant milestone in its trajectory since the election of Donald Trump as President of the United States. The cryptocurrency, which surpassed this threshold around 12:00 GMT, peaked at $80,116 before experiencing a slight decline. This remarkable rise occurs against the backdrop of positive expectations about a potential easing of regulations in the cryptocurrency market, in contrast to the stricter policies proposed by current President Joe Biden.
Trump, during his campaign, committed to making the United States the "world capital of Bitcoin and cryptocurrencies," leading to an increase in investment in digital assets. This trend is also reflected in the popularity of memecoins, such as Dogecoin, which have experienced a surge due to the backing of influential figures like Elon Musk, a strong supporter of the elected president.
Optimism is not limited to the cryptocurrency sphere. Wall Street also closed the week with strong gains, fueled by the Federal Reserve's announcement of a further reduction in interest rates, bringing them to a range of 4.5% to 4.75%. This adjustment has contributed to a favorable environment for investors, who have seen the Dow Jones and S&P 500 indices reach all-time highs, marking increases of 4.6% and 4.7% respectively, and culminating in their best week of the year.
The markets are reacting positively to the perception that a Republican government could be more inclined towards deregulation, which would benefit mergers and acquisitions. In this climate, shares of Trump Media have also seen a significant increase, rising 15% amid speculation about a possible stock sale by Trump, which has captured the interest of investors.
Overall, the sectors of non-essential goods, technology, industry, and finance have recorded considerable gains this week, all in an environment that demonstrates marked optimism towards the expected economic policies with the new leadership in the White House.