Following Donald Trump’s confirmed victory in the 47th U.S. presidential election on November 6, Bitcoin has set new all-time highs daily. This surge is largely attributed to Trump’s pledge to transform the U.S. into the global cryptocurrency capital.
Countries that have previously implemented Bitcoin-friendly policies are expected to generate significant profits. One such nation is El Salvador, the first country in the world to adopt Bitcoin as a legal currency. It is led by a ruler who once adopted Bitcoin as a legal tender and has reportedly reaped substantial benefits, drawing industry attention.
As of Tuesday morning, Bitcoin’s price has surpassed $89,000, fueled by the “Trump effect” and the record-breaking New York Stock Exchange surge. According to Binance, a global exchange, Bitcoin was trading at approximately $89,001 at 8 a.m. on that day.
The price of Bitcoin rose to $85,000 for the first time the previous day and now seems to be approaching $90,000. Bitcoin was trading between $69,000 and $70,000 on November 5, right before Trump’s win, which marks an increase of over 25% in just one week.
Additionally, Dogecoin, a cryptocurrency linked to Elon Musk, who strongly supported Trump’s campaign, has reportedly achieved returns exceeding 100%.
Susannah Streeter from British investment firm Hargreaves Lansdown commented that the market is ecstatic with Trump’s victory, and his commitment to support cryptocurrencies fully has elevated Bitcoin to a new dimension. She noted that previously hostile toward cryptocurrencies, Trump has shifted his stance, pledging to make the U.S. the world’s leading hub for digital currencies. Bitcoin traders are now anticipating a more lenient regulatory environment.
U.S. economic media outlet CNBC reported that some analysts expect cryptocurrency prices to continue rising and predict Bitcoin may surpass $100,000 by the end of the year.
Salvadoran President Nayib Bukele, who calls himself a dictator and aggressively pursues policies, is likely to be pleased with this Bitcoin rally. He pioneered making Bitcoin legal tender in El Salvador.
When El Salvador first adopted Bitcoin as a legal tender in September 2021, extreme price fluctuations led to criticism, ridicule, and even fears of economic collapse. Nevertheless, El Salvador continued its pro-Bitcoin policies.
In 2022, El Salvador began purchasing one Bitcoin daily, reportedly accumulating around 500 Bitcoins over the past three years. As of Sunday, blockchain technology firm Block Bits announced that El Salvador holds approximately 5,300 Bitcoins.
The value of this Bitcoin holding is estimated at around $426 million. While there were previous losses during Bitcoin’s sharp declines, the recent rally has resulted in an unrealized gain of about 90%, reflecting high expectations for favorable outcomes. President Bukele, who spearheaded this effort, referred to these Bitcoin purchases as a Strategic Bitcoin Reserve (SBR) and promoted cryptocurrency investment through his unique leadership.
Even during the 2022 crypto winter, Bukele maintained his buy-the-dip strategy despite widespread skepticism. He expanded El Salvador’s crypto assets through innovative means, including geothermal Bitcoin mining and issuing bonds.
Following Trump’s victory, El Salvador’s Bitcoin Office celebrated on X, announcing that the Strategic Bitcoin Reserve had boosted the value of the country’s legal tender by nearly $25 million within 24 hours, demonstrating the success of first-mover countries.
Besides El Salvador, Bhutan is another prominent country that has profited from Bitcoin accumulation. Since entering the Bitcoin mining sector in 2017, Bhutan has amassed about $1 billion worth of Bitcoin, accounting for roughly one-third of its GDP. Bhutan is the second country after El Salvador to confirm government-held Bitcoin reserves.
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