Prices of cryptocurrencies are supposed to skyrocket in the coming years. The fancy green lights have been switched on for numerous weeks for a decentralized and self-governing system of currency; its recorded price is rising at an exponential speed, and the American election is responsible for its very last set of records.
An overly political-they cannot offend the political context-currency. Cryptocurrency, or "cryptoactive"-an electronic currency designed, created, and circulated from peer to peer without the intervention of a bank or a central bank. More than ten years since it appeared, this intangible currency is becoming more and more commonplace on the global market, where its value is subject to fluctuation owing to exposure to geopolitical hazards.
So indeed, since Donald Trump was elected in the U.S., the value of bitcoin-a crypto currency-continues to climb and shatter records. It was reported to have crossed the totally remarkable $95,000 mark on Thursday, November 21, for the first time.
As Stephen Innes, the analyst at SPI Asset Management, explains, the "Trump effect" is the basis of all this. "Bitcoin is rapidly approaching the phenomenal valuation of $100,000, buoyed on speculators' increased confidence that the Trump administration would open a friendly door to cryptocurrencies, hence betting on that narrative which is nailing the run," as reported by Le Figaro.
To bring the matter down to the levels of reality with a concrete example, I would mention bitcoin: on November 10 last, it had already breached last March's high of $80,000 and touched $90,000 only three days later, on the 13th. Today its value is estimated at almost $95,000, the newest peak.
This could be explained by the return of Donald Trump to power. The former US president has long been vouching for this new currency and announcing relaxation measures on its regulations. During his campaign, he had promised to make the United States "the world capital of bitcoin and cryptocurrencies".
It can also be considered as the proof of the newly elected president's wanting to remove Gary Gensler, the head of the US financial markets regulator, the SEC, despised by the cryptocurrency sector, claiming him to be a hardliner. He has already announced his resignation thereafter.
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