Why Crypto Boomed After Trump's Win

Bitcoin hit a new record, topping $87, 000, after Donald Trump's election victory. Cryptocurrencies have rallied since then. Analysts say this is due to expectations of a more crypto-friendly administration. However, crypto is known for its volatility and risks. The election result surprised many. Trump, once a crypto skeptic, changed his stance and embraced cryptocurrencies. He promised to make the U. S. the crypto capital and remove the SEC chair who has been tough on crypto. Investors hope for regulatory clarity and more freedom. Crypto had already gained with the launch of spot bitcoin ETFs earlier this year. But experts warn about the risks. Crypto can be very volatile, and investors can lose money as quickly as they gain it. The climate impact is also a big concern. Crypto mining uses a lot of energy and often relies on polluting sources. However, there are efforts to use cleaner energy. Bitcoin's price has swung from $5, 000 to nearly $70, 000 and back down again. FTX's collapse last year also hurt crypto's reputation. Despite this, investors are returning as inflation cools and spot ETFs succeed.