Bitcoin Price has reached a record high of over $106,000, continuing its strong growth trend this year thanks to a series of favorable factors, including the impact of President-elect Donald Trump on the market.
In one day, the price of Bitcoin rose 3.7%, reaching a new high of $106,608, marking an increase of more than 140% over the past year and a 15% increase in the past 30 days.
The strong rise of Bitcoin and the crypto market in general has been driven by Trump's victory in the presidential election in early November. Although there are still many questions about whether the new policies related to digital assets will be implemented, many experts believe that recent developments are creating positive momentum for the market.
Lucas Schweiger, Head of Digital Asset Research at Sygnum Bank, said "the commitments in the election campaign to make the United States the 'crypto capital of the world' can be seen as a strategic political move." He also commented:
"However, the proposals from the Crypto Council, along with information about Trump's meeting with some key industry figures, such as Coinbase CEO Brian Armstrong, suggest that the new administration will focus more on the crypto market and explore the potential opportunities of this industry for the US economy."
Specific proposals, such as adjusting the tax policy for Bitcoin Miners and profits from certain Tokens, need to be approved by Congress and the Senate, both of which are currently controlled by the Republican Party.
In addition, the appointment of former PayPal COO, David Sacks, as the "White House AI and Crypto Czar" earlier this month, along with the increasing competition among major companies to secure a position on the Advisory Council, are all contributing to the positive momentum for the market, according to Schweiger.
This week, the Federal Open Market Committee of the Federal Reserve will hold its final meeting of the year, with the possibility of a further 25 basis point rate cut, bringing the interest rate to around 4.25-4.50%.
The continued rate cuts will continue to benefit risky assets, including cryptocurrencies, as borrowing costs decrease and encourage investment in these assets.
The positive sentiment towards the upward price trend in the coming year is also supporting the development of altcoins and memecoins, which have seen strong growth since Trump's victory on November 5th. Coins like SUI and Polkadot (DOT) are currently leading in performance, up 7% and 5.8% respectively among the top 20 cryptocurrencies by market capitalization.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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