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The price of Bitcoin (BTC) skyrocketed with the victory of Donald Trump.
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Although it is a global reference, the dollar devalues over time.
Donald Trump’s victory in the United States elections generated an upward momentum in the price of bitcoin (BTC), to the point that it nominally surpassed the all-time high (ATH) of $73,700 that it had reached in March 2024.
Although the dollar is a global reference, that does not mean that does not depreciate over time due to the monetary issue or the policies promoted by the Federal Reserve of that country (Fed).
Therefore, to get an accurate view of the real price of bitcoin, it is necessary to adjust the ATH for inflation. This allows us to see the real impact of economic movements on the value of the digital currency.
This is because the price of BTC reached $69,000 in November 2021an ATH that was displaced by the $73,700 it marked in March 2024.
However, if adjusted for inflation, the true all-time high is equal to $77,975according to the calculator Fxtop. This is because the consumer price index (CPI) in the United States increased by 13% between November 2021 and March 2024.
This calculation reflects How the depreciation of the dollar impacts the real price of digital assetsin this case BTC.
As CriptoNoticias already reported, as the first data on the presidential election in the United States became known, which showed Donald Trump as the clear winner, the price of BTC marked a new ATH in nominal terms and surpassed the barrier of $75,000.
But, taking into account its inflation-adjusted value in dollars, the digital currency created by Satoshi Nakamoto it has not yet reached its true ATH.
At the time of publishing this note, the price of bitcoin is 75,540, which means it is 3% away from its ATH adjusted by the US CPI.
Bitcoin price from 2021 to November 6, 2024. Source: TradingView.
BTC will exceed its inflation-adjusted ATH, according to projections
Financial company analysts Bernstein stated in their last report, projected that the digital currency could climb to $90,000after the victory he obtained donald trump on Kamala Harris (Democratic Party).
Iván Paz ChainCEO of Trading Different, is also optimistic in the medium and long term. In dialogue with CriptoNoticias during LABITCONF 2024, he declared: “I am calmly projecting bitcoin above $140,000.”
Norberto GiudiceArgentine influencer known as “Cryptonorber,” commented in an interview with CriptoNoticias during LABITCONF 2024: “If Trump wins and, in addition, the Fed reduces the interest rate by a quarter of a point on November 7, we could be facing a super cycle that would lead bitcoin to approach $200,000.”
In his latest report, Standard Chartered had projected that, if the Republicans gained control of Congress, bitcoin could reach USD 125,000 before the end of 2024. And, according to the results that were known in the last hours, the Senate will be in Republican hands after 4 years. According to data from the Associated Press, it will have 52 Republican senators compared to 42 Democrats.
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