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Bitcoin price continues to find buyers above $63,000, and now MTGOX is in the spotlight after Germany sales. Some of the reserves were returned to the Kraken exchange, and billions of dollars in assets will be returned to creditors within 7-14 days. It is uncertain to what extent investors who had the opportunity to buy BTC at $200 will sell. Popular economist Alex, however, points to something more important in the medium term.
Economic Crypto Commentary
Donald Trump was the biggest reason for the recent rise, and with the successive good news, BTC price started to rise. For more than a year, we have been talking about the positive results of the November elections on cryptocurrencies. Finally, in the last few months, this scenario has become more accepted by investors with Trump’s pro-crypto statements.
Alex Krüger also draws attention to this issue and says;
“Reason: Trump’s administration could implement supportive regulations for cryptocurrencies, encouraging innovation and adoption.”
Krüger suggests that the future Trump administration could focus on tax cuts, reducing government spending, and other measures. This could lead to “higher inflation expectations and rising long-term interest rates, thus a steeper yield curve.”
“Liberalization in the financial sector could reduce compliance costs and increase the profitability of financial institutions. A steeper yield curve would also benefit financial institutions that profit from the widening gap between short-term borrowing rates and long-term lending rates. Even if you don’t like Trump, you can trade based on his victory. Don’t let your political orientation affect your perception of probabilities or how you trade on them.”
Trump and Bitcoin
Like Michael Saylor, Trump was also a former crypto opponent. In May 2018, he ordered Treasury Secretary Steven Mnuchin to go after Bitcoin and crypto frauds. As the elections approached, he accepted that he could coexist with Bitcoin. Subsequently, we saw much more moderate statements from him.
Along with all this, the co-founders of the Gemini crypto exchange, Tyler and Cameron Winklevoss, made a $2 million crypto donation in BTC to him. While Coinbase and other US companies also supported him, Trump attracted figures like Elon Musk due to many policy promises.
