Bitcoin trades at nearly R2m thanks to Donald Trump

Bitcoin has reached a new record after incoming US President Donald Trump expressed support for digital assets and his plan to make the US a dominant force in the sector.

On Monday, Bitcoin was trading at R1,981,614, a new high since early December 2024.

Christo de Wit, country manager for South Africa at Luno told The Citizen that different factors have contributed to Bitcoin’s new record, with the most recent being Trump’s comments on a potential “strategic” bitcoin reserve.

“Speaking to CNBC last week, Trump indicated that the US wanted to get ahead of China and other countries and that he had plans for a reserve.”

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Bitcoin in 2024

De Wit said the previous all-time high of R1,840,061 was recorded on 8 December 2024. 

Trump’s administration is seen to be more friendly towards cryptocurrencies than President Joe Biden’s outgoing administration.

The factors driving the Bitcoin rally this year include the approval of Bitcoin spot ETFs in January, which sparked positive sentiment that was also enhanced by other events.

“The most recent Bitcoin halving occurred in 2024—it takes place roughly every four years and reduces the mining reward, cutting the supply of Bitcoin and adding an anti-inflationary effect. The halving has often sparked a bullish momentum, leading to significant price increases.”

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US’ influence

He added that the market commentators say that investors appear to be rallying behind the prospect of institutional-level support from the US, which further fuels market momentum.

When speaking about the future, he said it remains to be seen whether the current positive sentiment continues into 2025.

“With the US presidential inauguration set for 20 January, crypto investors will be watching closely to see whether the Trump administration delivers on its pro-crypto policy.”

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