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How Donald Trump’s US election win could send Bitcoin to $1 million

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Donald Trump’s landslide win will have huge impacts across the globe – including potentially sending the cryptocurrency soaring.

ANALYSIS

Donald Trump’s presidential victory could be the game-changing catalyst that propels Bitcoin’s price to a staggering $1 million — about 10 times its current value in the coming years.

But it all comes down to one key question: Can Trump deliver on his plan?

Bitcoin reaches new all-time highs

Bitcoiners seem to think he will — the price shot past its all-time high to $A114,173 on Wednesday, just as it looked like Mr Trump might win.

How Donald Trump’s US election win could send Bitcoin to $1 million

After he was declared the 47th president of the United States, Bitcoin hit two more all-time highs, most recently reaching $A123,114 over the weekend.

How Donald Trump’s US election win could send Bitcoin to $1 million

Donald Trump’s presidential victory could be the game-changing catalyst that propels Bitcoin’s price to a staggering $1 million — around 10 times its current value in the coming years.

But how could someone older than the average grandpa possibly be the key factor to send Bitcoin soaring, just because he won the presidency?

Well, the reason might be simpler than you expect.

Among the “pro-crypto” president-elect’s plans are to mine the remaining Bitcoin in the US and set up a crypto advisory council.

And one key move that could trigger major price action is Mr Trump backing the “Bitcoin Strategic Reserve”.

The proposal, introduced by US Senator Cynthia Lummis in July, aims for the US government to buy one million Bitcoins over the next five years.

Trump’s powerful message

One million Bitcoin — worth approximately $121.16 billion at today’s value — represents about 5 per cent of Bitcoin’s total supply of 21 million.

Not only is the number a massive chunk of the supply, but the ramifications may go way further.

The US government’s addition of Bitcoin as a reserve asset sends a powerful message to the world that Bitcoin is a legitimate asset. Holding such a large amount would be a major endorsement for the largest cryptocurrency by market capitalisation.

Should other countries follow suit with their own Bitcoin Strategic Reserve, it could trigger the largest supply shock we’ve ever witnessed in our lifetime.

How Donald Trump’s US election win could send Bitcoin to $1 million

After President-elect Donald Trump was declared the 47th president of the United States, Bitcoin hit two more all-time highs. Picture: Brendan Smialowski/AFP

Massive supply shock looms

With 11 of the world’s largest asset managers, including BlackRock and Grayscale, already launching spot Bitcoin exchange-traded funds in the US this January and amassing around $A40 billion so far, the introduction of the bill could lead to a frenzy among major companies worried about Bitcoin’s supply running out.

Microsoft shareholders are set to decide next month whether the company should explore adding Bitcoin to its balance sheet.

Crypto tax software Koinly founder and chief executive Robin Singh agrees that passing such a bill could lead to “increased scarcity” and a “rise in Bitcoin’s price”.

However, he points out that it may not happen right away, as getting bills through the US legislative process is often a lengthy and complex task.

“By holding substantial Bitcoin reserves, the US government would signal strong institutional endorsement, potentially boosting market confidence and driving up demand,” Mr Singh says.

How Donald Trump’s US election win could send Bitcoin to $1 million

The bill could lead to a frenzy among major companies worried about Bitcoin’s supply running out. Picture: Chris McGrath/Getty Images

Implementation ‘remains uncertain’

“The implementation of these initiatives remains uncertain, and the broader regulatory framework is still evolving,” Mr Singh adds.

Meanwhile, Australian crypto exchange Independent Reserve chief executive Adrian Przelozny believes Mr Trump’s win “will result in more investment and innovation”.

Mr Przelozny is also hopeful it will “put an end to the antagonistic behaviour of the US Securities and Exchange Commission (SEC) and other agencies”.

Mr Trump has vowed to “fire” Gary Gensler, the chair of the US SEC, who is a well-known crypto critic who has faced strong opposition in the crypto industry for his harsh stance on digital assets.

This year, several public figures, including former Twitter (now X) chief executive Jack Dorsey and Ark Invest chief executive Cathie Wood, have already predicted that Bitcoin will reach over $1 million by 2030.

Disclaimer: The content provided is for informational purposes only. Please refrain from considering any of the above information as investment, financial, or other advice. It’s essential to conduct your own research before making any investment decisions.

Ciaran Lyons is a cryptocurrency market analyst, journalist and avid investor, with a background as a national radio presenter. He regularly contributes to global cryptocurrency publications and was one of the five Australians on the latest SBS series Filthy Rich and Homeless.

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