Photo by Annie Spratt on Unsplash
The value of Bitcoin hit new heights as pioneering cryptocurrency edges closer than ever before to smashing through the $100,000 barrier. The knock-on effect of this has been that many Wall Street share prices have also shown increases.
This growth comes following the recent presidential campaign that confirmed Donald Trump’s return as US President.
This increase in share prices could provide insight into the future of Trump’s presidency, but time will tell how well these shares hold their value.
The Development of Bitcoin
Bitcoin was the first cryptocurrency to be released and started its journey in 2009. The decentralized digital currency was created in 2008 by Satoshi Nakamoto, a pseudonym for a person or group of people who developed the groundbreaking cryptocurrency and authored its white paper.
Initially seen as an investment opportunity, it has taken Bitcoin and other cryptocurrencies several years to establish themselves as alternatives to fiat currencies.
Now, Bitcoin is accepted by major brands including Starbucks and Amazon, and the crypto casino industry has developed dedicated games for its users. Cryptocurrency expert Gary McLellan explains that the best Bitcoin casino operators have been able to grow thanks to their enhanced security, lower transaction fees, and the transparency of blockchain technology.
US consumers have been big advocates of offshore crypto casinos because of restrictive online gambling regulations within the US borders that prohibit operations in all but seven states.
This has led to consumers exploring offshore options, and the decentralized nature of cryptocurrency has made it easier for international transactions to take place quickly, safely, and without the hassle of exchange rates being involved.
As day-to-day services move online, more consumers are keen to find secure financial options, and cryptocurrencies have been an excellent alternative to traditional payment methods.
Established crypto options like Bitcoin and Ethereum have proved popular among new users, but alternative stablecoins have also been introduced to combat market volatility. These alternative crypto options peg themselves to fiat currency values to provide stability, most commonly they use the US dollar, effectively creating a digital dollar.
However, it is the volatile nature of crypto that has attracted so many people to it, with Bitcoin’s recent surge in value an example of this.
Trump’s Impact on Bitcoin's Surge in Value
Bitcoin’s massive surge in value which saw it grow by more than 35% has been put down to Trump’s election win and his pro-crypto stance.
The news that Trump is set to appoint the first crypto expert in White House history has been a boost to the industry and a potential move to amend restrictive legislation has also helped Bitcoin reach a new high value.
However, it is not just cryptocurrencies that have benefitted, with several other markets experiencing growth. Trump's passion for business and industry has never been hidden. A White House that is seen to favor large tie-ups has helped merger speculation between Human and Cigna Group. This resulted in Cigna seeing a 7.5% rise in stock value.
Elon Musk's involvement with the campaign has also been beneficial for Tesla stock. Following the election, Tesla's stock price rose by 15%
Trump's America First policies are benefitting US-focused companies while big tech companies have not fared so well, with Nvidia dropping by 1.7% and other tech stocks that had been driven by AI potential being viewed as overvalued.
Treasury yields are showing growth with economic growth expected under Trump, but Federal Reserve cuts are lower than expected and the risk of inflation causing some worry despite lower rates boosting economic growth.
While these have all come in the wake of Trump's victory, experts are advising caution with uncertainty over policy implementation. The potential for elevated valuations to reach a tipping point, making long-term growth less certain.
