Bitcoin price hit an all-time high of $80,000 following Donald Trump’s presidential victory.
As the Financial Times (FT) points out reported On Sunday, November 10, the digital currency hit that record high as Trump – seen as ushering in an era of pro-cryptocurrency government – scored victories in the key states of Arizona and Nevada.
The price of Bitcoin rose as much as 4.5% on Sunday, the report said, citing LSEG data, helping to push up other cryptocurrencies like Ethereum and Solana.
“Bitcoin, one of the riskiest risk assets, is having its moment in the sun,” said Eswar Prasad, economy professor at Cornell University. “The regulatory clouds are dissipating. Financial conditions are becoming easier and the US macroeconomic outlook remains bright.”
As the report notes, the crypto industry views Trump’s victory as a victory for them.waiting the new administration is much less hostile to the digital assets sector.
“We would look for several bright spots for the asset class early in the administration: regulatory changes…and changes at the Securities and Exchange Commission (SEC) that would lead to a looser regulatory stance on digital assets” , Geoff Kendrick, Head of Digital. asset research at Standard Chartered, said on Friday.
$80,000 record follows Bitcoin previous high of $75,000reached last week immediately after Trump’s victory.
As has been discussed here, the need for a clear definition regulatory frameworks remains one of the most pressing issues facing the crypto world, and a Trump administration would likely see substantial shake-ups in the direction of regulators such as the SEC.
“Such a change could lead to a relaxation of standards regarding securities classification and tokenized assets, thereby allowing crypto businesses to operate. with greater flexibility“, PYMNTS recently wrote.
Vice President-elect JD Vance was among the 60 senators who voted in May to rescind the SEC’s Staff Accounting Bulletin 121 (SAB 121), which governs how banks must manage customers’ crypto assetsdemanding to treat these assets as liabilities. President Biden ultimately vetoed the of the Senate move.
However, deregulation carries certain risks, especially if the limits surrounding securities laws are pushed too far. This approach could lead to increased volatility in the market, putting unsophisticated investors at risk if they invest in uncontrolled or underregulated digital assets.
“Cryptocurrency markets are intrinsically volatileand the possibility of reduced surveillance could amplify this feature,” PYMNTS wrote. “Deregulation can lead to significant speculative activity, potentially making the crypto market more vulnerable to bubbles and crashes.”
