The price of Bitcoin climbed on Monday, extending its weekend gains after former US President Donald Trump hinted at looser regulations for cryptocurrency during a speech at the Bitcoin Convention.
Initial Hesitation Followed by Buying Spree
Despite initial market jitters following Trump’s address, which lacked an explicit promise of a national Bitcoin reserve, buyers quickly jumped in, pushing the price upwards. As of Monday, 1:39 ET, Bitcoin had risen 3.3% in the past 24 hours to $69,645.2.
Trump’s Crypto Push: Competition with China and Regulation Rollback
Trump’s speech at the Bitcoin Conference focused on two key points: establishing the US as the global leader in crypto before China and implementing regulations friendlier than those proposed by his potential Democratic rival, Kamala Harris.
He proposed a White House crypto advisory council and a national Bitcoin stockpile built from the US government’s existing crypto holdings, primarily from law enforcement seizures.
Shifting Stance: From Skeptic to Crypto Advocate
Interestingly, Trump, who previously dismissed cryptocurrency as a scam in 2021, has adopted a more favorable stance during his recent campaign. His current campaign accepts crypto donations, and he has even launched his own line of non-fungible tokens (NFTs). Furthermore, Trump vowed to remove Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC) who has been a vocal critic of the crypto industry.
Uncertain Election Outcome and Regulatory Landscape
Recent polls suggest a tight race between Trump and Harris, who has not yet revealed any specific plans for crypto regulation. However, considering her background as a prosecutor with experience in financial fraud cases, experts speculate she might continue the government’s crackdown on cryptocurrency.
Bitcoin’s Price: Speculative Boost and Mt. Gox Uncertainty
Bitcoin’s recent price surge seems fueled by speculation surrounding a potential Trump presidency. The token has rebounded significantly over the past two weeks from four-month lows. However, further gains remain uncertain due to the ongoing saga of defunct crypto exchange Mt. Gox, which is mobilizing its Bitcoin holdings for distribution.
Altcoins Rise Alongside Bitcoin
In addition to Bitcoin, other major cryptocurrencies (altcoins) also saw price increases in anticipation of friendlier US regulations. Furthermore, speculation about potential interest rate cuts by the Federal Reserve this week played a role in supporting risk-on assets like cryptocurrencies.
Ether, the world’s second-largest cryptocurrency, gained 4.8% to $3,375.63, fueled in part by the recent launch of spot exchange-traded funds (ETFs) tracking the token. Other prominent altcoins like XRP, ADA, and SOL also experienced gains ranging from 0.8% to 6%. Meme tokens like DOGE and SHIB also saw increases of 3.4% and 2.1%, respectively.
