In the wake of Donald Trump’s election victory, the cryptocurrency market has been buzzing with optimism. Bitcoin (BTC-USD), in particular, has seen its price surge, nearing the $100,000 mark, fueled by expectations of a more crypto-friendly administration. Trump’s campaign promises to transform the U.S. into the “crypto capital of the world” have evidently reignited investor interest in digital currencies.
The change in political tides has also influenced regulatory perspectives. The resignation of SEC Chair Gary Gensler, known for his strict regulatory approach towards cryptocurrencies, signals a shift towards potentially more lenient policies. This development, coupled with Trump’s pro-crypto stance, is viewed by industry experts as a catalyst for further growth in Bitcoin’s value, possibly pushing it past the $100,000 threshold in the near future.
However, the cryptocurrency market isn’t moving in unison. The ETH/BTC price ratio, which measures Ethereum’s value against Bitcoin, has hit a three-year low at 0.034. Year-to-date, the metric has fallen by over 35%. This decline, noted Georgy Slavin-Rudakov from B2BINPAY in a recent interview with TheStreet Cryptoby, reflects Bitcoin’s dominance, especially as spot Bitcoin ETFs gain traction among large investors. Ethereum, while competing with other smart contract platforms like Solana, also serves as a store of value, but it’s currently losing ground to Bitcoin in this regard.
Looking forward, Slavin-Rudakov suggests that Ethereum might still see upward movement, potentially targeting prices between $3,600 and $4,000. This potential for growth is based on Ethereum needing to access higher liquidity levels. However, the ETH/BTC ratio’s fate hangs in the balance of Bitcoin’s performance. If Bitcoin’s growth slows, Ethereum could witness a recovery in the ratio. On the other hand, if Bitcoin continues its upward trajectory, Ethereum might follow but at a slower pace, keeping the ratio under pressure.
This political and market dynamic presents a fascinating period for cryptocurrency enthusiasts and investors. The shift towards a more favorable regulatory environment, combined with market movements, could redefine the landscape for digital assets in the coming months.
Price Action: BTC traded 0.86% lower at $98,068 at press time, while ETH traded 2.24% higher at $3,418.
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