Bitcoin surges past US$84,000 amid Trump’s pro-crypto stance and market optimism

Trump's win sparks Bitcoin rally, but experts caution against high valuations and bubble risks

Bitcoin surges past US$84,000 amid Trump’s pro-crypto stance and market optimism

The price of Bitcoin recently surged past US$84,000, driven by expectations of looser regulations following Donald Trump’s election victory, according to BNN Bloomberg.

Trump’s pro-cryptocurrency stance, along with potential for supportive lawmakers in the US Congress, has fuelled optimism in the market.

Part of Trump’s campaign included promises to establish the US as a leader in the crypto industry and to consider a strategic Bitcoin stockpile, as reported by Bloomberg News.

John Zechner, chair and founder of J. Zechner Associates, explained in an interview with BNN Bloomberg that Bitcoin’s rally reflects Trump’s campaign promises to support cryptocurrency.

“(Bitcoin’s rally is) simply a follow up on the promises that Trump made during (the) electioneering period and then he got behind the whole cryptocurrency move,” he said.

Zechner noted that with Bitcoin’s fixed supply and Trump’s expected regulatory easing, conditions appear favourable for Bitcoin’s growth.

Zechner pointed out that the US Securities & Exchange Commission’s (SEC) stringent regulations have been the main barrier to greater crypto enthusiasm.

He speculated that if Trump replaces SEC Chair Gary Gensler, it may lead to a more open market and heightened demand for cryptocurrency.

Despite Bitcoin’s rising demand, Zechner expressed concerns about its high valuations.

As a “fundamental analyst,” he remains cautious, stating, “The only argument I continue to hear about why you should buy Bitcoin is because it’s going to go higher, which is sort of the ultimate theory for a bubble asset.”

He added that he does not foresee major governments or institutions fully supporting Bitcoin or blockchain technology.

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