Thought Leadership
With a post, US President Donald Trump is also giving other cryptocurrencies a boost. Prices rise sharply after Trump names names for a new strategic reserve.
Bitcoin maintained its high level at the start of the new week after Sunday’s price surge. Although the price fell by around two and a half percent to USD 91,892 in the late morning, it had also shot up by around ten percent to a good USD 95,000 at its peak on Sunday. Compared to Friday, the increase is even more pronounced, as one Bitcoin only cost a good 78,000 dollars at times.
US President Donald Trump provided a tailwind on Sunday. He mentioned the names of cryptocurrencies that are to be included in a new US strategic reserve. “I will make sure that the USA is the crypto capital of the world,” Trump wrote on social media.
Trump’s lip service is grist to the mill for investors, said expert Timo Emden from Emden Research at the weekend. In the first few weeks after Trump’s inauguration, the hoped-for support for the crypto sector failed to materialize. According to Emden, the disappointment has obviously turned into euphoria again.
Investors are betting that Trump will make further crypto-specific announcements in the coming days, said Emden. The introduction of a strategic cryptocurrency reserve could act as a blueprint for other major economies.
Trump is seen as a promoter of cryptocurrencies – his election gave a further boost to Bitcoin, which had already risen sharply. On the day of Trump’s inauguration on January 20, Bitcoin temporarily cost more than 109,000 dollars. Despite the losses since then, the price of Bitcoin is still around 35% higher than before the US presidential election in early November.
Observers blamed the weakness in the share price on Friday on the Trump administration’s tariff decisions. The US president had recently announced that he would impose tariffs of 25% on imports from the European Union. This announcement not only put pressure on digital currencies, but also led to price falls on the stock markets.
However, the crypto market is also suffering from incidents that call into question the integrity of digital currencies as a whole. These include the spectacular theft of billions of dollars from the Bybit crypto exchange in Dubai. A week ago, criminal hackers succeeded in illegally diverting digital money worth 1.5 billion US dollars (around 1.44 billion euros).
dpa
