Bitcoin Price Surges to Record High Ahead of Trump’s Crypto Dinner

Bitcoin’s price surged to a record high of over $111,000 just before a dinner hosted by Donald Trump for crypto investors. The event, with ethical concerns, gathered more than 200 buyers who invested heavily in Trump’s $TRUMP coin, further tightening his ties with the crypto community. While Bitcoin’s rise signals growing acceptance, questions about its volatility and effectiveness as an investment remain unresolved.

In a striking coincidence, just ahead of a lavish dinner hosted by former President Donald Trump for cryptocurrency investors, Bitcoin has skyrocketed to new heights. As of midday Thursday, Bitcoin’s value settled around $111,300, reaching a peak of $111,875 around 3:30 a.m. This surge might bolster Trump’s standing as a supporter of digital currencies, though the ethical implications of the dinner have prompted scrutiny.

The gathering is expected to take place at Trump’s property near Washington, D.C. Here, Trump will mingle with some of the most notable holders of his $TRUMP coin cryptocurrency. Reports say these buyers collectively spent an astonishing $394 million on this memecoin, with individual investments ranging from $55,000 to an eye-watering $37.7 million, according to blockchain analytics firm Nansen.

Planning for this gala has been underway for months. It’s part of Trump’s strategy to maintain good relations with the crypto community—a group that has previously contributed significant sums to his campaigns, making them a vital donor base in the upcoming 2024 election.

However, the crypto world is not without its disappointments. Many Bitcoin proponents feel let down by Trump’s lack of commitment to buying the cryptocurrency in an effort to support a strategic reserve. He has been, however, less aggressive than the Biden administration in terms of cryptocurrency regulations, which some see as a positive shift.

The unveiling of Trump’s $TRUMP coin, just before his inauguration, surprised a lot of seasoned Bitcoin investors. Despite the coin experiencing a drop in value following an initial boost, Trump and his family reportedly profited handsomely from its sales. Critics of the dinner have raised alarms about potential conflicts of interest, foreign influence, and even constitutional issues, particularly with leading buyer Justin Sun, a Chinese national with a controversial past.

While Trump has successfully brushed off these criticisms, stating through White House officials that, “The President is working to secure GOOD deals for the American people,” the dinner is viewed suspiciously by some.

The timing of Bitcoin’s surge coincides with growing concerns over the global economic situation, which has made alternative assets, like Bitcoin, more appealing to investors. Recent trends suggest that Bitcoin is increasingly serving as a risky alternative rather than a safe haven, as it historically correlates more closely with tech stock performance than with traditional inflation hedges.

Interestingly, Bitcoin’s continuing rise happened as major tech stocks and the broader market, like the S&P 500, faced downturns. Some believe the recent passage of the GENIUS Act, which could facilitate the issuance of privately-backed digital tokens, has added momentum to Bitcoin’s ascent.

Financial experts like Dan Ives from Wedbush Securities believe Bitcoin is here to stay in investment portfolios, even in small percentages. “It’s still a risky asset, but the deregulatory environment has changed the way people view crypto as an investment,” Ives notes. While optimism does surround Bitcoin’s recent rally, ongoing debates about its effectiveness as a hedge against market volatility remain unresolved.

As Bitcoin hits a new record just ahead of Trump’s crypto investor dinner, the timing suggests a possible boost to Trump’s crypto credentials. Despite concern over ethical implications, many investors are drawn to Bitcoin amid economic uncertainty. Overall, this increasing interest could signify a shift in how cryptocurrencies are perceived in the investment landscape, though significant debates on their stability continue. In short, the crypto world remains as unpredictable as ever, caught between hope and skepticism.

Original Source: www.nbcnews.com