BITCOIN has been making headlines again, ever since the now President-elect Donald Trump announced his bid for the White House.
But what impact could a Trump presidency have on the original cryptocurrency? Read on to explore how global events influence Bitcoin’s price and uncover who the major players are.
eToro Crypto Academy
(A beginner’s guide)
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
Take two to minutes to learn more about cryptocurrency.
Donald Trump’s return to the White House, whether you view it positively or negatively, injects unpredictability into global markets.
For Bitcoin, this could spark growing interest as people look into alternative assets, especially with Trump’s pro-crypto talk during his campaign.
If you’re curious to learn more about Bitcoin or the wider world of cryptocurrency, eToro’s Crypto Academy is a great starting block to learn the crypto investing basics.
You can also explore how to buy Bitcoin for the first time and gain insights into owning crypto responsibly.
But remember, Bitcoin is not a guaranteed win, it’s a high-risk, high-volatility asset. Read on to find out more.
What is crypto?
Crypto is a digital asset and decentralised form of money, meaning it’s not issued or directly controlled by an authority, like a central bank.
The first and most famous example is Bitcoin (BTC), launched in 2009.
Unlike the cash in your wallet, Bitcoin exists purely online as a digital token, and is created and stored on a secure online ledger called a blockchain.
Its appeal lies in the control it gives you, cutting out banks and middlemen.
But, that freedom comes with a trade-off – the unpredictable volatility of the cryptocurrency market.
Trump’s standpoint on crypto
For years, Trump was a vocal critic of cryptocurrency, dismissing it as a rival to the US dollar and not real money.
But since launching his 2024 campaign, the President-elect has embraced the crypto world.
His change of heart has sparked a wave of investor confidence, pushing Bitcoin to record-breaking highs of $100,000 in December 2024.
Crypto enthusiasts are now hopeful that Trump’s endorsement signals a shift toward a more crypto-friendly administration, with hopes to position the US as a global leader in the rise of digital currencies.
The ups and downs of Bitcoin
Being the first cryptocurrency on the scene, Bitcoin has seen its share of dramatic highs and lows, riding the uncharted waters of a brand-new market.
Its first major milestone came when it broke the $1,000 barrier, grabbing the attention of early adopters.
Fast forward four years and Bitcoin’s value skyrocketed tenfold, surpassing $10,000 in 2017.
But with steep highs come sharp falls, and world events often hit cryptos hard.
Take the early days of the pandemic, for example, when Bitcoin’s value halved overnight.
Yet, in the years that followed, it reached new heights.
True to its nature, Bitcoin is wildly volatile compared to traditional investments like stocks and shares or gold.
Crashes and comebacks are all par for the course.
The Elon Musk effect
Another key factor behind Bitcoin’s recent surge is the influence of Tesla owner Elon Musk, the world’s richest man and a vocal supporter of crypto.
A remark from Musk, whether in favour or against, has been known to send prices rocketing or plummeting within minutes.
While Musk was initially wary of the crypto market, he has become a strong advocate in recent years, championing it as a tool to revolutionise finance and decentralise power.
Now, with Musk’s endorsement of Trump, crypto enthusiasts are feeling optimistic, believing this partnership could signal positive developments ahead.
Other crypto contenders
Bitcoin might be the biggest name in crypto, but it’s far from the only one. Here are some of the other big players:
Ethereum (ETH), the second-largest cryptocurrency, is renowned for its smart contracts—automated programs that run when specific conditions are met. It’s also a major player in the booming NFT market.
Cardano (ADA) stands out for its focus on sustainability and scalability, aiming to tackle issues like Bitcoin’s energy-intensive operations.
Ripple (XRP) takes the lead in cross-border payments, offering some of the fastest and most affordable transactions, typically completing in just 3–5 seconds.
While each cryptocurrency has its unique strengths, Bitcoin continues to set the standard for the market.
eToro Crypto Academy
(A beginner’s guide)
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.
Take two to minutes to learn more about cryptocurrency.
