Bitcoin's Trump Card

Wall Street goes all in on great crypto comeback fueled by Trump

MUMBAI: Wall Street is betting big on the comeback of cryptocurrencies, with institutional investors and hedge funds pouring in millions of dollars into digital assets. The sudden surge in interest has been fueled by none other than US President Donald Trump, who has been touting the potential of cryptocurrencies in recent weeks.

According to a report by Bloomberg, institutional investors have poured in over $1 billion in cryptocurrencies in the past month alone, with many more expected to follow suit. The report noted that this is a significant increase from the $200 million that was invested in cryptocurrencies during the entire year of 2020.

The sudden surge in interest has been driven by a combination of factors, including the growing recognition of cryptocurrencies as a legitimate asset class, as well as the increasing adoption of digital assets by mainstream financial institutions. Additionally, the report noted that the rise of decentralized finance (DeFi) has also contributed to the surge in interest, with many investors attracted to the high-yielding returns offered by DeFi protocols.

Trump's comments on cryptocurrencies have also played a significant role in the recent surge in interest. In a recent tweet, Trump noted that cryptocurrencies have the potential to "make the US dollar look like a joke", which has been interpreted by many as a sign that the President is open to the idea of digital currencies.

The surge in interest has been led by institutional investors such as hedge funds and family offices, which have been pouring in millions of dollars into cryptocurrencies. According to a report by CNBC, the number of institutional investors allocating a portion of their assets to cryptocurrencies has increased by over 50% in the past year alone.

Among the cryptocurrencies that have seen the biggest surge in interest are Bitcoin, Ethereum, and Litecoin. According to a report by CoinMarketCap, the total market capitalization of cryptocurrencies has increased by over 50% in the past month alone, with many experts predicting that this trend will continue in the coming months.

While some experts have warned that the recent surge in interest is driven by speculation rather than fundamentals, many others believe that the growing recognition of cryptocurrencies as a legitimate asset class will continue to drive growth in the coming months.