Bitcoin Trades At Nearly R2m Thanks To Donald Trump

Bitcoin has hit a new record after US President Donald Trump expressed his support for digital assets and outlined plans to make the US a leading force in the sector.

On Monday, Bitcoin reached a trading value of R1,981,614, marking a new peak since early December 2024.

Christo de Wit, South Africa Country Manager at Luno, explained to The Citizen that several factors have contributed to Bitcoins surge, with Trumps recent comments on the potential creation of a "strategic" Bitcoin reserve being a key driver.

In a CNBC interview last week, Trump stated that the US aims to outpace China and other nations in the cryptocurrency space and that he has plans to establish a Bitcoin reserve.

De Wit noted that Bitcoins previous all-time high of R1,840,061 occurred on December 8, 2024. Trumps administration is viewed as more crypto-friendly compared to President Joe Bidens outgoing administration.

Factors fueling Bitcoins rally this year include the approval of Bitcoin spot ETFs in January, which boosted market sentiment. This positive momentum has been further strengthened by a number of other developments.

The latest Bitcoin halving took place in 2024, which happens roughly every four years. This event cuts the mining reward in half, reducing the supply of Bitcoin and introducing an anti-inflationary effect. Historically, halving events have led to bullish market trends, driving significant price increases, de Wit said.

He also noted that market analysts believe investors are rallying behind the possibility of institutional support from the US, which continues to drive market enthusiasm.

Looking ahead, de Wit pointed out that it remains uncertain whether this positive sentiment will persist into 2025.

With the US presidential inauguration scheduled for January 20, crypto investors will be closely monitoring whether the Trump administration will follow through on its pro-crypto policies, he added.