The rapid growth of bitcoin after Donald Trump's victory in the US presidential election is due to investors' expectations of possible changes in US government policy. This was stated by Andriy Novak, Chairman of the Committee of Economists of Ukraine, in an exclusive commentary to UNN.
The recent sharp rise in the price of bitcoin is a direct reaction to Trump's victory in the US presidential election. Because many investors believe that under Trump, there may be a tendency for US government policy to move towards the use of cryptocurrencies to reduce the debt burden, which is very high in the US now
At the same time, according to the economist, the cryptocurrency market is speculative and emotional, and depends on many factors and their combinations. Including the emotional perception of certain events.
As for other cryptocurrencies, everything will depend on whether there will be speculation about a particular currency or whether someone will provoke increased interest in them
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Donald Trump's recent victory in the US presidential election has sparked a wave of interest in the financial markets, especially in the cryptocurrency sector. Bitcoin quickly soared to a record $89,000. Currently, the price of the coin has slightly decreased to almost $87,500. As fintech expert Olena Sosiedka explained , cryptocurrencies, especially bitcoin, are sensitive to political events, such as the US presidential election, because they are considered alternative assets amid financial and political instability. She does not rule out that the price of bitcoin may rise before Trump's inauguration in January.
In her opinion, investors can continue to invest in bitcoin, expecting positive changes in regulatory policy under the new president Donald Trump. The expert also shared her thoughts on other cryptocurrencies, such as Ethereum and Litecoin, which may rise in price amid growing interest in digital assets in general. At the same time, she reminded that cryptocurrencies remain high-risk assets, so any investment requires a cautious approach.