Regulation
Could Bitcoin Rise to $100,000 as Trump Returns to Power?
The anticipation is at a high level as Bitcoin Conference 2024 is getting closer, driven not only by technical developments but also by the surprising support of an influential person: Donald Trump.
The surprising acceptance of Bitcoin from the former president could change the cryptocurrency landscape and cast a long shadow over the political debate and market projections. Here’s a look at how a potential Trump presidency could impact the direction of cryptocurrencies.
Trump’s Bitcoin Shift
Once a staunch opponent of Bitcoin, Donald Trump has radically changed his language. Even suggesting Bitcoin as a possible reserve currency alongside the U.S. dollar, his campaign has aggressively embraced the digital asset. This newfound zeal differs significantly from his past stance, in which he wrote off Bitcoin as a “scam.”
In recent discussions, the former president has labeled Bitcoin as “digital gold.” His campaign promises to increase the acceptability of the digital asset. This could give businesses and investors more confidence, adding more appeal to Bitcoin.
Regulatory changes and economic effects
Trump’s potential impact on Bitcoin depends largely on his stance on regulation. Given JD Vance’s pro-crypto stance, Trump’s choice as a running mate suggests a likely tsunami of crypto-friendly legislation. Clearer rules and increased institutional investment in Bitcoin could find their way into this regulatory climate.
Another important element for the price dynamics of Bitcoin could be Trump’s economic plan. His platform emphasizes reducing inflation and improving economic stability, qualities that directly affect the value of Bitcoin.
Trump’s economic policies have been criticized for a fairly consistent investment environment during his previous presidency. If he can foster a better economic climate, Bitcoin would benefit from increased liquidity and investor confidence.
Conjectures and market responses
The Bitcoin market is driven by speculation, so Trump’s close relationship with the cryptocurrency has amplified this influence. Recent events, such as the attempted assassination of Trumpdemonstrated how drastically market sentiment can respond to political changes. After the episode, cryptocurrency surged; meme coins and market sentiment reflected the high stakes of Trump’s involvement.
Meanwhile, after the assassination attempt, the former commander-in-chief judgments against Biden increased slightly (see chart below).
Trump’s erratic political path fuels even more speculation about his possible administration. The outcome of the election is still unknown, although Kamala Harris is becoming a strong contender. Harris’s opinion on Bitcoin could potentially influence market dynamics, thus adding another layer of complexity to the future of the currency.
Analysts disagree on the possible impact of a Trump victory on the price of Bitcoin as the election approaches. While some see a positive trend with Bitcoin potentially skyrocketing above $100,000, others remain cautious, expecting more solid indications from Trump’s campaign and plans.
BTC Price Prediction
Technical signals show that Bitcoin will rise significantly in the coming week. The cryptocurrency is trading 33% below our monthly projection, expecting a rebound if market circumstances improve. Bullish indications such as a rising moving average and a stronger Relative Strength Index (RSI) imply that BTC could correct its undervaluation and reach the expected price target.
Bitcoin’s expected three-month increase of 536% and six-month growth of 53% show investor confidence. Analysts predict a Growth of 148% in BTC in a year, indicating its long-term potential. Positive trendline breakouts and solid support levels support this projection. Institutional interest and favorable macroeconomic conditions could boost Bitcoin price in the long run.
Featured image from Getty Images, chart from TradingView