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Wed, Nov 13, 2024 | Jumada al-Awwal 12, 1446 | DXB
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UAE investors turn millionaires, thanks to Bitcoin record surge after Trump win
For the first time, the world's leading cryptocurrency surged past $82,000 on Monday
Representations of cryptocurrency Bitcoin are seen in this illustration picture taken in Paris, France. Photo: Reuters file
Dubai-based Dutch national Saajan Mangrey is a dollar millionaire – thanks to his timely investment in Bitcoin.
The UAE resident bought 22 bitcoins at $535 each for a total of $11,770 in June 2016. As of Monday afternoon, they were valued at $1.815 million as Bitcoin hit an all-time high of over $82,500.
Saajan Mangrey
Bitcoin and other cryptocurrencies have rallied to record highs after Donald Trump won US elections again last week. Analysts and investors predict Trump administration policies will be more friendly and benefit cryptocurrencies than the previous administration under Joe Biden.
Bitcoin has risen nearly 22 per cent in the past six days. Trading at $67,363 on November 5, it hit $74,635 on November 6 – the day when Trump was declared the winner. Since then, it has rallied to $82,218 on Monday evening UAE time.
This means Mangrey’s Bitcoin portfolio has increased by over Dh1 million in just six days.
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The UAE investors who anticipated Trump's victory have been steadily accumulating cryptocurrencies throughout 2024, positioning themselves for potential market gains, said Muhannad Al-Teneiji, founder of Wealth Training Center and CEO at Matrix for AI.
Muhannad Al-Teneiji
“Many long-term holders in Dubai and Abu Dhabi remain confident in their crypto investments, maintaining their positions due to Trump's pro-crypto stance and the UAE's supportive regulatory environment. The combination of Trump's win and the UAE's crypto-friendly policies has reinforced investor confidence in holding digital assets for the long term,” he added.
Vijay Valecha, chief investment officer, Century Financial, said the world's largest cryptocurrency has more than doubled from its 2024 low of $38,505, reached on January 23.
Vijay Valecha
UAE adoption growing
The UAE has seen remarkable growth in cryptocurrency adoption since 2021, with approximately 30.4 per cent – 3 million people – now owning cryptocurrency, added Al-Teneiji.
“With Donald Trump's decisive victory in the 2024 election and his strong pro-crypto stance, investor confidence in the UAE crypto market further increased. The sector revenue is projected to grow by 7.89 per cent annually, reaching $395.8 million by 2028. Key factors driving this growth include the establishment of Virtual Assets Regulatory Authority (VARA) in Dubai, tax exemptions on crypto transactions, and strong institutional participation, making the UAE a regional leader in crypto adoption,” he said.
Joseph Dahrieh, managing principal at Tickmill, said the gradual increase in cryptocurrency adoption in the UAE has been driven by internal factors, such as the implementation of favourable regulations and government initiatives to promote technological innovation rather than Trump’s recent election.
Will Bitcoin touch $100,000?
Al-Teneiji sees Bitcoin showing strong signs of reaching $100,000, likely by early-mid 2025 if the market maintains a strong performance. “Current momentum is extremely bullish...With optimism increasing, this target seems achievable in the short to medium term, barring any major market disruptions,” he said.
Al-Teneiji added that cryptocurrencies will be primarily dictated by five key factors – growing institutional adoption; technological advancements; global economic conditions, including interest rates, inflation, and monetary policy; the evolving regulatory environment, and environmental concerns about crypto mining's energy consumption.
Joseph Dahrieh of Tickmill said despite the crypto community's optimism that Bitcoin could reach $100,000 as early as this year, the market's path is still uncertain. “Regulatory actions — both positive and restrictive — can either bolster or limit Bitcoin's upward momentum. Although the $100,000 threshold is becoming closer, the uncertainty around new policies and the volatility of the crypto market could affect Bitcoin’s path,” he said.
Joseph Dahrieh
On November 6, digital asset custodian Copper.co. had also said that Bitcoin’s upward trajectory may continue into the new year with a $100,000 target.
Mohamed Hashad, chief market strategist, Noor Capital, sees Bitcoin breaching the $100,000 mark following Trump's election win. “A high open interest (OI) in futures markets along with the increasing market dominance of stablecoins suggests traders are positioning themselves for high volatility. With the market capitalisation of stablecoins hitting a new high and fluctuating around $160 billion, there is room for significant leverage in the market, potentially pushing BTC to reach $100,000 within the next three months,” he added.
Rifad Mahasneh, general manager at OKX Mena, said there is a clear paradigm shift into the next phase of growth for crypto, influenced by the recent 25bps interest rate cut, global election results and the rise of traditional equities. “While there will still be macro-economic and geopolitical uncertainty, leading to more short-term volatility, the fundamentals of Bitcoin are becoming more evident to a wider audience base, with access also increasing,” said Mahasneh.
Word of caution
As Bitcoin reached a record high, analysts advised caution as cryptos are highly volatile.
“For anyone who wants to invest in anything, particularly in crypto, please read into what you are investing. The moment I invested I knew that it would be a long-term investment. In my opinion, BTC is becoming more and more powerful. I didn't invest because I wanted to become a ‘crypto millionaire’. I invested because I believed in the vision and the technology,” said Mangrey.
Ola Doudin, CEO and co-founder, BitOasis, said investors are confident that a Trump presidency will help achieve more regulatory clarity in the US, which is ultimately needed for the sustainable and responsible growth of the industry. “We will have to wait and see how this evolves in the future, but we expect to see some further enthusiasm in the market for the time being,” she said.
Muhannad Al-Teneiji, founder of Wealth Training Center and CEO at Matrix for AI, said the short-term outlook appears particularly positive, driven by anticipated changes in SEC leadership and a more crypto-friendly regulatory environment.
“Trump's pro-crypto stance, including the potential creation of a strategic Bitcoin reserve, has boosted market confidence. In the medium term, the sector is expected to benefit from increased institutional adoption and improved market liquidity,” he said.
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Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
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