Bitcoin and politics: fintech expert Olena Sosedka talked about how Trump’s victory will affect the crypto market

Against the background of the recent victory of Donald Trump in the presidential elections in the United States, the cryptocurrency market and, in particular, Bitcoin, showed rapid growth – its value has already reached 89 thousand dollars per coin. UNN asked Olena Sosyedka, a fintech expert and co-founder of the first fintech ecosystem in Ukraine, Concord Fintech Solutions, whether this is related to the political situation in America and what else investors should expect. She also talked about why cryptocurrencies react to important political events and what consequences to expect from Trump’s coming to power.

– Recently, Bitcoin has shown record growth. Many associate this with Donald Trump’s victory in the US presidential elections. Can this cryptocurrency really depend so much on the political agenda in America?

– Bitcoin and other cryptocurrencies are really susceptible to the influence of political events, especially in countries with large economies like the US. The perception of Bitcoin as an alternative asset increases in times of political instability, so important political events, such as election results or statements by politicians, can affect its price. However, the cryptocurrency market remains complex and multi-layered, and the price of bitcoin is affected not only by the political, but also by the economic situation, for example, the decision of the Fed (Federal Reserve System – ed.), macroeconomic indicators and global inflation.

I have previously mentioned that Donald Trump’s support for the crypto industry has created optimism in the market, which has attracted both private and institutional investors. Many big players started buying bitcoin, and this caused its value to rise and “pull” other cryptocurrencies along with it. In addition to cryptocurrencies, global financial markets also reacted to Trump’s victory. They also showed rapid growth.

– If Bitcoin did rise in price after Trump’s victory, can we expect even more growth of this currency before Trump’s inauguration on January 20?

– Assuming that Bitcoin has indeed strengthened on the news of Trump’s victory, then the rise may continue until his inauguration. Investors may react to expectations related to potential policies, especially if they are aimed at economic stimulus or contribute to a decline in trust in traditional financial institutions.

– Can the currency fall after Trump takes office and shows his domestic and foreign political course?

– Indeed, there is a possibility of a correction in the value of Bitcoin after Trump officially takes office and starts implementing his course. If his policies strengthen the dollar or reduce risks to the traditional economy, this could weaken bitcoin’s position as some investors may move to more stable assets.

– Why does the cryptocurrency sphere have high hopes for Trump?

– Many participants of the crypto market associate expectations with the future president, who can be perceived as a supporter of deregulation (deregulation of the cryptocurrency market – ed.), which will reduce pressure on cryptocurrencies and make them more accessible. His policies could also cause bitcoin to rise if accompanied by increased government spending or trigger inflationary risks.

– Tell us what role Bitcoin plays in the growth an American technology company MicroStrategy led by Michael Saylor?

(Saylor on X (Twitter) expressed his support for Bitcoin and also reported that as of November 10, MicroStrategy purchased an additional 27,200 BTC for $2.03 billion)

– MicroStrategy and its CEO Michael Saylor play a significant role in increasing the credibility of Bitcoin. Saylor became one of the first major executives to make bitcoin an important asset in his company, and that sent a positive signal to other institutional investors. MicroStrategy’s actions boost confidence in bitcoin as a long-term asset, pushing its rate higher.

– Is it true that Saylor’s bitcoin bets can also move bitcoin up or down?

– Yes, the actions of Michael Saylor, especially his large purchases, directly affect the rate. His statements or deals can cause the price to fluctuate because his figure is associated with the institutional support of Bitcoin.

– Do you see an upper price limit for Bitcoin? Or can she still surprise everyone?

– Predicting the maximum price is difficult because Bitcoin is tied to supply and demand, which are constantly changing. If the trend towards institutional investment continues and its role as “digital gold” strengthens, the price may rise significantly above current levels.

– Your Pro Tip: To Buy or Not to Buy Bitcoin Now?

– The purchase decision depends on personal goals and acceptable risk. If the goal is a long-term investment with a high degree of risk, Bitcoin may be interesting. However, the volatility of Bitcoin requires a cautious approach and it is best to consult a financial expert.

– Will Trump’s victory affect other leading cryptocurrencies: Ethereum, BNB, Litecoin?

– Yes, Trump’s victory can affect not only Bitcoin, but also other major cryptocurrencies, such as Ethereum, BNB, Litecoin, because interest in cryptocurrencies often grows comprehensively.

We will remind

UNN published a series of posts in which he talked about digital currencies and their possibilities. Our first article was devoted to the technology underlying cryptocurrency – blockchain: “Crypt for Dummies”. Part 1: What is blockchain and its “chips” that few people know about.

The second article – Bitcoin halving: “Crypt for Dummies”. Part 2: What is halving and why is it causing a stir in the cryptocurrency market.

The third material: “Crypt for Dummies”. Part 3: A step-by-step guide on how to buy cryptocurrency.

The fourth material: “Crypt for Dummies”. Part 4: What are coins and tokens and how do they differ?

The fifth material: “Crypt for Dummies”. Part 5. Cold and hot wallets

Sixth material: Crypt for dummies. Part 6. Security when using cryptocurrency exchanges and exchangers