Saajan Mangrey, a Dubai-based Dutch national, has become a dollar millionaire thanks to his early investment in Bitcoin. The UAE resident purchased 22 bitcoins in June 2016 at $535 each, totaling $11,770. As of Monday afternoon, his holdings were valued at $1.815 million as Bitcoin surged to a record high of over $82,500.
Bitcoin’s Surge and Trump’s Impact on Crypto
Bitcoin and other cryptocurrencies have reached new highs, fueled by Donald Trump’s recent victory in the 2024 US elections. Analysts predict Trump’s policies will be more favorable to digital currencies than the previous administration under Joe Biden. Bitcoin has risen nearly 22% in the past six days, climbing from $67,363 on November 5 to $74,635 the following day when Trump was declared the winner. By Monday evening, Bitcoin was trading at $82,218.
This price increase means Mangrey’s Bitcoin portfolio has gained over Dh1 million in just six days.
UAE Crypto Investors Prepare for Market Boom
UAE investors who predicted Trump’s victory have been building up their cryptocurrency portfolios throughout 2024, positioning themselves for market gains, according to Muhannad Al-Teneiji, founder of Wealth Training Center and CEO at Matrix for AI. “Dubai and Abu Dhabi’s long-term holders are confident in their investments due to Trump’s pro-crypto stance and the UAE’s supportive regulatory policies,” he said.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that Bitcoin has more than doubled from its January 2024 low of $38,505, reflecting growing investor confidence.
UAE’s Growing Crypto Adoption
Cryptocurrency adoption in the UAE has grown significantly since 2021, with around 30.4% (3 million people) now owning digital assets. Al-Teneiji added that with Trump’s victory and his strong pro-crypto position, investor confidence in the UAE’s crypto market has strengthened.
The UAE’s crypto sector is projected to grow by 7.89% annually, reaching $395.8 million by 2028, thanks to initiatives like the Virtual Assets Regulatory Authority (VARA) and tax exemptions on crypto transactions.
Bitcoin’s Path to $100,000
Looking ahead, Al-Teneiji sees Bitcoin on a strong trajectory towards $100,000, potentially reaching this mark by early or mid-2025 if the market maintains its bullish momentum. “The current market momentum is extremely strong, and with optimism rising, this target seems achievable in the near term, barring any major market disruptions,” he said.
However, Joseph Dahrieh, managing principal at Tickmill, cautioned that despite the optimism around Bitcoin hitting $100,000, the market remains uncertain. Regulatory actions could either help or hinder Bitcoin’s rise, and while $100,000 seems within reach, volatility remains a key factor.
Crypto Enthusiasm in the UAE
Despite the uncertainty, the UAE has experienced steady growth in cryptocurrency adoption, driven by favorable regulations and government initiatives. Joseph Dahrieh noted that the country’s crypto sector has expanded not only due to external factors, such as Trump’s election, but also because of internal efforts to encourage technological innovation.
Rifad Mahasneh, general manager at OKX Mena, emphasized the growing strength of Bitcoin as its fundamentals become clearer to a broader audience. He highlighted the role of the recent interest rate cut and global political events in influencing crypto’s next growth phase.
Caution Amidst Record Highs
While Bitcoin reaches new all-time highs, experts advise caution, as the cryptocurrency market remains volatile. Mangrey, reflecting on his own investment, said, “I didn’t invest to become a ‘crypto millionaire.’ I believed in Bitcoin’s technology and long-term vision.” He stressed the importance of understanding what you are investing in, especially with such a volatile asset class.
Ola Doudin, CEO of BitOasis, also shared optimism, noting that many investors are confident that Trump’s presidency will bring much-needed regulatory clarity for the industry’s sustainable growth. She added, “We may see more enthusiasm in the market for the time being, but it will be crucial to monitor how regulations evolve.”
Looking Ahead for the Crypto Market
Muhannad Al-Teneiji remains positive about the short-term outlook, driven by anticipated regulatory changes in the US and a crypto-friendly environment. “Trump’s pro-crypto stance and potential creation of a Bitcoin reserve have boosted market confidence. As the sector continues to benefit from increased institutional adoption and improved liquidity, the future looks promising,” he concluded.
