Trump Causes Crypto Boom
The 2024 election of Donald Trump has set off an unexpected rally in cryptocurrency markets leading Bitcoin to hit a record high of over USD 80,000 and sparking significant gains in other digital assets like Ethereum and Dogecoin.
This bullish surge is no accident but a reaction to Trump’s campaign promises and his pro crypto pivot. Once sceptical of digital assets, Trump’s recent embrace of crypto currency has re awakened investors and crypto executives alike creating what many now refer to as a “mooning.”
Trump Crypto Moon
Historically, Trump has been less than enthusiastic about crypto once labelling it a “scam” and calling for strict regulation. However, his tone changed leading up to the 2024 election when he started appealing to crypto supporters and accepted campaign contributions in digital assets.
Trump’s embrace of cryptocurrency went beyond campaign financing as he made policy promises that aligned with the interests of the crypto community. For instance, Trump has vowed to make the U.S. “the crypto capital of the planet,” a commitment that would require significant regulatory changes.
He’s also pledged to remove what he views as regulatory obstacles for the industry, including ousting Gary Gensler who is the current head of the Securities and Exchange Commission (SEC) who has been a vocal advocate for strict crypto regulation surprising aspects of Trump’s new crypto friendly stance is his promise to commute the prison sentence of Ross Ulbricht the founder of the Silk Road dark web marketplace.
Ulbricht is something of a folk hero in libertarian and pro-crypto circles, and Trump’s decision to support his release is widely seen as an attempt to further ingratiate himself with this voter base.
Future SEC Direction
A Trump administration is expected to bring a lighter regulatory touch to the crypto industry. Investors and crypto businesses see Trump’s policies as a chance to push back against the current wave of regulatory scrutiny. Under Biden, the SEC has taken a tough stance on crypto with Gensler leading investigations into major players, including Coinbase and Binance.
Trump’s camp has signalled a desire to roll back these regulations and potentially dropping ongoing lawsuits and shifting regulatory focus away from strict enforcement.
This anticipated shift has excited investors as a reduction in regulatory pressure could attract new participants and institutional capital into the crypto market. With Trump in office it’s expected that the SEC will adopt a more lenient approach. Allowing crypto firms to operate with fewer restrictions. This policy shift could lead to a more favourable climate for crypto development and innovation in the U.S.
Trumps impact
Trump’s victory has solidified the role of cryptocurrency as a topic of interest in mainstream politics. The fact that the former president has actively courted the crypto community sends a strong signal to traditional investors and institutional players.
For many in finance, Trump’s win is seen as an endorsement of digital assets and the potential for an economic shift towards decentralized finance (DeFi). His ties to high profile figures like Elon Musk, who has vocally supported Dogecoin only strengthen the association between Trump’s administration and pro crypto policies.
This is not just rhetoric but a clear sign to crypto advocates that the U.S. could be on the verge of a digital asset renaissance. Trump’s proposed policies give investors’ confidence that their assets won’t face the same degree of regulatory uncertainty as before. In practical terms this could result in higher liquidity, greater adoption and new market infrastructure to support widespread crypto use in the U.S
The Trump’s win on crypto prices has been dramatic. Bitcoin surged 8% following the announcement, surpassing previous highs while Ethereum and Dogecoin also saw double digit gains. These price spikes show the market’s positive reaction to Trump’s election and hint at the bullish sentiment surrounding his pro crypto stance. For many crypto supporters the market’s response is validation of the belief that a friendly administration can have a significant influence on asset valuations.
Coinbase which is the largest crypto exchange in the U.S., saw itself rise in a single day, while other crypto exposed stocks like MicroStrategy and Robinhood also posted strong gains. The price movements are a testament to the perceived value that a pro crypto administration could unlock.
As the Trump administration moves forward analysts suggest we may see further bullish waves, potentially driving Bitcoin towards the much discussed USD 100,000 mark.
Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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what's currently happening to the market is really amazing & seems like it's literally "limit is the sky", at the moment btc at $81.5k & $100k seems to be a very reasonable milestone, & it's not just btc many other cryptos have a very great chance of reaching new ATHs & even some already did, mr.gary will be replaced so there will be a crypto friendly sec, gov, congress, senate, & all of this means better laws, more investment & a great future for crypto. post contains useful data- well done, have a good day.
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