Australian crypto industry says Donald Trump’s election win will turbocharge bitcoin gains
Bitcoin has surpassed $US100,000 and Australia’s crypto industry says the digital currency is no longer fringe technology but offers strong investment prospects.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
The price of bitcoin could exceed $US120,000 ($186,000) by early 2025, experts say, with a Donald Trump-inspired boom set to be extended after the cryptocurrency rocketed through the $US100,000 barrier for the first time.
Bitcoin has soared more than 40 per cent in the past month since the election win by the former president, with investors betting that his second administration will turbocharge gains after promising to “end Joe Biden’s war on crypto”, despite his earlier scepticism about bitcoin.
Investors who bought bitcoin at the beginning of 2023 would be 500 per cent richer today.
Analysts say that a brief sell-off is now expected. However, the price could surge to $US120,000 by the first quarter of 2025 on expectations that Mr Trump’s policies would increase mainstream adoption and institutional inflows, IG Australia analyst Tony Sycamore said.
MHC Digital Group founder and executive chairman Mark Carnegie said market participants were beginning to realise that not only was the digital asset industry no longer under attack, but it now had the support of the incoming Trump administration in the US.
“This change of tone has not yet been priced in and could see a huge rerating of bitcoin and all digital assets as they become an integral part of the financial system of the world,” he said. “Positive comments from (Federal Reserve chairman Jerome) Powell and the appointment of Paul Atkins today go to show you that we have entered a new phase in the adoption of digital assets.“
Kraken Australia managing director Jonathon Miller said bitcoin had passed the psychological $US100,000 barrier and would now be taken more seriously by the broader investment community. He said the rally in the past month revealed the pent-up demand previously masked by uncertainty in the US.
“For many, the passing of this threshold will signal the transition of bitcoin from a fringe technology through to a recognised asset with a role in the portfolios of the everyday investor,” he said.
“While this is something to celebrate, the overall mission of crypto and the wider industry remains the same – to democratise access to finance and improve upon the status quo.”
Bitcoin is a limited asset: only 21 million coins that can be “mined”. About 1.1 million coins are still left to be mined, while it is estimated that four million have been lost.
VanEck Asia Pacific CEO Arian Neiron told The Australian that bitcoin was very momentum-driven and had significant price swings.
“We could start to see some profit-taking as investors see these record prices and upward trajectory as an opportunity,” he said. “Everything happening right now is unprecedented. There are the obvious tailwinds that are affording price momentum. We are now seeing a lot of Australian investors using bitcoin ETFs to get exposure to the bitcoin price.”
Crypto investors are cheering Mr Trump’s pledge to create a strategic national reserve for the government’s bitcoin holdings – a policy that could boost the price by absorbing supply.
He has also vowed to ease the regulatory burden on the crypto industry and has tapped crypto advocate Paul Atkins to lead the Securities and Exchange Commission, replacing Gary Gensler who led a crackdown on the digital currencies. During the campaign Mr Trump attended several high profile bitcoin events.
Caroline Bowler, CEO of Australian crypto trading exchange BTC Markets, said optimism around the appointment of Paul Atkins as SEC chair has fuelled sentiment for bitcoin.
“Atkins’s market-friendly stance and emphasis on fostering innovation have raised expectations for clearer, more crypto-aligned policies,” she said.
Ms Bowler said adding to the momentum were broader regulatory changes that were occurring in Australia, including ASIC’s ongoing consultation on digital asset regulations with industry stakeholders, particularly regarding stablecoins, wrapped tokens, and DeFi tools, which could affect Australians’ access to certain crypto products.
“A well-structured regulatory framework is essential to ensure local platforms remain competitive while safeguarding innovation,” she said.
“Together, these domestic and international factors create a supportive backdrop for bitcoin’s historic rise.”
Originally published as Australian crypto industry says Donald Trump’s election win will turbocharge bitcoin gains
Bada Bing, Bada Boom: Our top business yarns for 2024
We’ve had some big yarns this year, from energy to the retail sector, namely Woolworths and Coles. And of course pensions and tax, plus the latest mishaps and shenanigans at the ABC.
Super Retail facing rush of whistleblowers
As many as 10 whistleblowers could have a potential case about an alleged toxic workplace environment at Super Retail Group, according to fresh court details.