It happened as announced. Bitcoin is charging ahead on the news of Donald Trump’s victory in the United States presidential election. The price exceeded the threshold of PLN 75,000. USD and set a new record.
– The predictions of those who said that bitcoin would benefit from Donald Trump’s victory have been confirmed. Supporters of technical analysis will say that the upward trend will continue, but I am skeptical. The question is whether they will realize the profits now or wait – says Kamil Cisowski, director of Xelion’s analysis and investment advisory team.
The record was set just a day after the largest outflow of money from Bitcoin ETFs in short history was recorded ($579.5 million).
-The plot twist was expected. Some investors had the right to take profits due to the uncertainty about the election results. These are phenomena related to risk valuation. I expect inflows to return to Bitcoin ETFs, and the best may be yet to come because Republicans may bring a bag of gifts to cryptocurrency investors. There will be a lot of noise, and bitcoin is a speculative asset, so it likes noise – says Eryk Szmyd, XTB analyst.
Since the beginning of the year, American funds investing in bitcoin have attracted USD 22.5 billion, including USD 3.6 billion in October.
Bitcoin’s rally also means that the new president receives a vote of confidence from loyal cryptocurrency fans who expect reforms to strengthen bitcoin’s position as a substitute for traditional money. During his campaign, the billionaire repeatedly announced his desire to fire Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), who filed over 100 lawsuits against cryptocurrency companies during his term, CNBC reports. Moreover, on July 27, 2024, during the annual bitcoin conference in Nashville, Donald Trump said that the American government would not sell its cryptocurrencies during his term of office. According to data from Arkham Intelligence, the US government has over 208,000 tokens, i.e. approximately 1%. global supply, with a total value of USD 15.3 billion.
– It wouldn’t surprise me if bitcoin was included in the US strategic reserves – it is an asset that has a life of its own and offers interesting investment opportunities. On the other hand, the speculative nature of bitcoin makes it impossible to predict short-term fluctuations. Volatility may be high, says Eryk Szmyd.
Kamil Cisowski has a different opinion and sees no chance of including bitcoin in the US strategic reserves.
– Let us recall that bitcoin is a threat to the dollar. Giving it such validation would be to question the dollar’s status as the leading global currency, adds the Xelion analyst.
Bitcoin’s Rally: A New Era or Just Hot Air?
Ah, Bitcoin! The cryptocurrency that’s seen more ups and downs than a Yo-Yo at a rodeo. And now, with Donald Trump strutting back into the presidential spotlight, Bitcoin has decided to rise like a phoenix from the ashes—or is it more of a balloon that’s just a bit too full? According to reports, Bitcoin’s price has soared past PLN 75,000, setting new records like it’s auditioning for a Fast and Furious sequel, and investors can’t help but pop the champagne!
Trump Effect: Cheers or Jeers?
Kamil Cisowski, the director of Xelion’s analysis and investment advisory team, has mixed feelings about this digital gold rush. Supporters of technical analysis are drumming up a narrative that the upward trend will continue, but Kamil remains skeptical. I mean, he’s got a point! It’s like believing every time you pull a cracker at Christmas, there will definitely be a prize, and not just the usual disappointment. The big question is whether these savvy investors will cash out now or hold on for dear life—reminds me of someone I know at the blackjack table!
Exit Strategy for ETFs: The Great Escape?
In an intriguing plot twist, just a day before Bitcoin reached its new heights, there was a dramatic $579.5 million exit from Bitcoin ETFs—cue the dramatic music! Eryk Szmyd from XTB sheds light on this behavior, suggesting that some investors, shrouded in the drama of election uncertainty, had every right to take their profits and run. Who could blame them? It’s like watching your mate attempt to do the floss dance after a few too many drinks—you don’t know whether to cheer or call for backup!
The Republican Party: Santa for Bitcoin?
For those holding their breath for more Bitcoin goodness, Szmyd believes inflows to Bitcoin ETFs could make a triumphant return. Apparently, the Republicans have big plans that could wrap Bitcoin in a festive bow. Seriously, though, if they start throwing “gifts” towards cryptocurrency investors, I fear it’ll be noisier than a toddler’s birthday party in a bounce house!
Bitcoin: A Vote of Confidence or a Reckless Gamble?
Now, let’s address the elephant in the room—or should I say the golden digital elephant? Bitcoin’s surge isn’t just a random fluke; it’s a loud and clear vote of confidence from cryptocurrency enthusiasts who are expecting big changes. Trump himself has vowed to fire Gary Gensler, the SEC chairman, faster than you can say “Is that even legal?” Gensler’s had a bust-up with cryptocurrency companies, filing more lawsuits than I’ve had questionable dinners. And Trump’s plan to keep the US government from cashing in their cryptocurrency tokens could change the game significantly. How exciting! Or terrifying. Depends on how much you’ve invested!
The Reserve Debate: Speculative Dream or Reality?
Szmyd raises eyebrows by suggesting that Bitcoin might just find its way into the US strategic reserves. If that happens, we might as well just drop the dollar and all become cryptocurrency enthusiasts! However, Cisowski quickly puts a pin in that balloon, reminding us of the pesky little detail: Bitcoin is a *threat* to the dollar. Imagine giving a 10-year-old a bag of candy and then telling them they can share it with you—chaos will ensue!
Final Thoughts: Hold onto Your Bitcoins!
So, what have we learned? Bitcoin is a wild ride that’s more unpredictable than a cat on catnip. While some analysts see hope in the wake of Trump’s presidency, others are playing it cool, reminding us that this digital currency can swing from confidence to calamity in the blink of an eye! So, hold onto your Bitcoins, folks—don’t get swept up in the excitement! Unless, of course, you enjoy roller coasters, in which case, buckle up!
He current chairman of the SEC, who’s been a thorn in the side of crypto enthusiasts with his regulatory approach. This promise alone sent some investors’ hopes soaring higher than the Bitcoin price itself. Eryk Szmyd notes that the speculation surrounding possible reforms under Trump’s administration might just keep the hype train rolling—assuming it doesn’t derail first.
Strategic Reserves or a Risky Bet?
But wait, there’s more! As if the situation couldn’t get more intriguing, the potential for Bitcoin to join the ranks of U.S. strategic reserves has been thrown into the mix. Eryk thinks it could be a wild ride, suggesting that Bitcoin offers modest prospects as a strategic asset. However, Kamil Cisowski chimes in to caution that endorsing Bitcoin in such a way could be seen as undermining the dollar’s stronghold as the world’s premier currency. It’s a double-edged sword, with each argument slicing through the layers of possibility.
Final Thoughts: Bitcoin’s Future
So, what’s the final verdict on Bitcoin’s newfound glory? Will it be a sustainable rally or just another bubble waiting to burst? As the dance between politics and cryptocurrency continues, both Kamil and Eryk offer valuable insights, but the truth may remain as elusive as predicting the next plot twist in a soap opera. One thing is for sure, though: Whatever happens next, it promises to be just as thrilling as the recent election drama!
**Interview Questions:**
1. Kamil, given your skepticism, what situational factors do you think might lead to a downturn in Bitcoin price after this surge?
2. Eryk, you mentioned potential inflows into Bitcoin ETFs—what specific mechanisms do you believe the Republican Party might use to incentivize these investments?
3. In the current environment, how should investors balance their portfolios between Bitcoin and traditional assets?
