Bitcoin passes the historic milestone of $90,000

Bitcoin crossed the threshold of $90,000 for the first time in its history on Wednesday, with the sector anticipating more flexible legislation and economic policies that would be favorable to it under the future Trump administration.

The largest cryptocurrency by capitalization exceeded this level around 3:30 p.m. It increased by 3.65% to $91,548.19 around 3:55 p.m.

Since Donald Trump’s victory on November 5, the value of bitcoin has increased by around 30%. After surpassing its record from last March, the digital currency rose above $80,000 on Sunday.

“Bitcoin capital of the world”

While Mr. Trump called cryptocurrencies a scam during his first term, he has since radically changed his position, even launching his own crypto and certifying that he would make the United States “the bitcoin and cryptocurrency capital of the world.”

One of the key measures mentioned by Trump during his campaign is the establishment of a strategic national reserve of bitcoins.

To constitute it, the American government would undertake to no longer sell the bitcoins already in its possession, mainly seized in the context of legal cases, currently numbering around 210,000, or the equivalent of around 19 billion dollars at current prices, according to Simon Peters of eToro, interviewed by AFP.

“Bitcoins on the free market”

If such a project were to see the light of day, the United States could “potentially purchase bitcoins on the open market,” speculates the analyst, boosting demand and legitimacy for this digital asset.

The president-elect also vowed to replace Gary Gensler, the boss of the policeman of American financial markets, the SEC, hated by a sector which criticizes him for a repressive approach.

Faced with the legislative vagueness surrounding cryptocurrencies, Mr. Gensler chose to regulate them like traditional financial securities.

“It seems that Trump has in his sights the president of the SEC who is clearly the emblem of the system’s fierce fight against the crypto sector,” Stéphane Ifrah, analyst at Coinhouse, explains to AFP.

Soaring due to “halving”

However, the SEC gave the green light this year to the launch in the United States of bitcoin and then ether ETFs, financial products backed by the price of these two cryptocurrencies. This investment vehicle allowed a wider audience to purchase bitcoins.

The twelve bitcoin-backed ETF funds listed in the United States currently hold the equivalent of approximately $94 billion, or more than 5% of the bitcoins in circulation, and have received more than 27 billion in bitcoins since their launch on January 11 , according to the SoSoValue website.

Finally, the price of bitcoin has also soared due to “halving,” a technical event that reduces the supply approximately every four years, by halving the bitcoin reward given to users (or “miners”) who make this digital currency work.

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