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Bitcoin returned to the area above $100 thousand thanks to Trump and the Fed


December, 12 2024
watermark Economic news

Bitcoin broke the $100,000 level again at trading on Wednesday, resuming growth after two days of decline. The main reason for the new growth was signs that supporters of the cryptocurrency industry will play a key role in shaping financial regulation in the United States under President-elect Donald Trump. 


According to recent reports, Brian Quintenz, head of policy at the cryptocurrency division of venture capital giant Andreessen Horowitz (a16z Crypto), has become one of the main candidates for the post of head of the Commodity Futures Trading Commission (CFTC). 


The bitcoin rally has received support from Trump's efforts to reverse the strict regulation of cryptocurrencies imposed by the Biden administration. These changes allowed cryptocurrencies to reach a record high of $103,990 on December 5th. Since then, the bitcoin exchange rate has continued to fluctuate around six-digit values. The current BTC quote is $101,540.


An additional incentive for growth was provided by expectations of a rate cut by the Federal Reserve (Fed), which supported positive investor sentiment. Speculators increased their bets on monetary policy easing after US inflation data coincided with forecasts. This also led to a rise in the Nasdaq 100 index, which reached a record.


In addition, Trump supported the idea of creating a strategic national bitcoin reserve, although many doubt the feasibility of this plan. The president-elect's son, Eric Trump, said his father would be an «incredible ally» for the cryptocurrency industry.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.