Before the US election, Bitcoin hits $71 thousand
29 October 2024 12:36
The value of the cryptocurrency Bitcoin has risen above the $71,000 mark for the first time since June this year. This was facilitated by inflows into exchange traded funds (ETFs) and speculation about the possible outcome of the upcoming US elections next week, reports "Komersant Ukrainian" reports with reference to Bloomberg.
The largest digital currency was up 2.7% today before dropping slightly to $70,870 as of 7 a.m. Kyiv time. Smaller cryptocurrencies, including the second-largest Ethereum and Dogecoin, popular among meme traders, also showed growth.
Some market participants view Bitcoin as a so-called “Trump bet” as Republican candidate Donald Trump actively supported digital assets during his election campaign. According to election prediction sites, Trump is in the lead, and polls show a tie between him and Democratic candidate Vice President Kamala Harris.
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According to Tony Sikemore, a market analyst at IG Australia Pty, Bitcoin continues to “price in Donald Trump’s election victory.” He added that to increase confidence in the possibility of exceeding the March record, the cryptocurrency needs to steadily gain a foothold above $70,000.
Trump has promised to make the US the world capital of cryptocurrencies. Harris, on the other hand, has taken a more balanced stance, promising to support the regulatory framework for the industry. Their positions contrast with the hardline approach to the sector under Joe Biden‘s presidency.
Trump also said he would ask billionaire Elon Musk, a major campaign contributor, to lead an initiative to cut government spending. This initiative has been dubbed the Department of Government Efficiency (DOGE), a reference to the Dogecoin token that Musk supports.
According to Arisa Toyosaki, co-founder of crypto derivatives provider Cega, Musk’s connection to the Trump campaign has helped improve sentiment among traders, who have increased bets that Bitcoin will peak at $80,000 by the end of November, regardless of who wins the election.
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Bitcoin
Bitcoin is the world’s first and most popular cryptocurrency, which appeared in 2009. It was created by a person or a group of people under the pseudonym Satoshi Nakamoto, who remains anonymous. Bitcoin is based on blockchain technology and has no centralized governing body.
Bitcoin is “mined” using a special mining technology, which is a digital analogy to the mining of physical minerals. Similarly to physical minerals, the number of Bitcoins is limited – there are only 21 million tokens in existence. So far, 19 million tokens have been mined, which is more than 90% of all “deposits”. Therefore, mining is becoming more and more difficult and expensive.
Bitcoin, like anything else in the world, can be exchanged for anything else, including traditional currencies. The value of Bitcoin shows the level of trust in it.
Bitcoin is considered to be a secure and well-protected currency with a very high level of confidentiality. In the Bitcoin system, all information about transactions is open, but information about owners is completely anonymous. That is why Bitcoin, like some other cryptocurrencies, is popular among Ukrainian corrupt officials.
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