Donald Trump is positioning himself as a fervent supporter of cryptocurrencies in general, and is even promising to make the USA “the Bitcoin capital of the world.” This has understandably buoyed enthusiasm.

Donald Trump has already suggested overhauling regulations surrounding cryptocurrencies, notably by easing restrictions.

He could, for example, start by replacing the chairman of the US federal financial markets regulator and watchdog, the Securities and Exchange Commission (SEC), with a more crypto-friendly regulator.

Donald Trump could also introduce capital gains tax breaks to encourage investment in cryptocurrencies. No doubt he will also encourage US companies to adopt Bitcoin and other virtual currencies in their transactions, as already tried and tested by Tesla, for example.

Unsurprisingly, the biggest names in the industry have backed the billionaire’s campaign. His most fervent supporter, Elon Musk, has also long been known to support the development of this type of currency. Finally, Donald Trump recently launched his own cryptocurrency platform, World Liberty Financial.

Trump’s promises of deregulation and his personal initiatives in the sector have therefore helped to stimulate demand and investor confidence, driving up the Bitcoin price.

And the trend is set to continue at least until Donald Trump’s inauguration on Jan 20, 2025.

The most optimistic observers are even predicting that the price of Bitcoin could reach US$250,000 by the summer. But what goes up, must usually come down. The key question is when.