Trump returns to the White House, a new era for the crypto industry begins

Author: Climber, Golden Finance

The 60th US presidential election took place on November 5th local time. Eligible voters in 51 constituencies across the United States voted indirectly through the Electoral College system. In the end, Trump won the election with a majority of votes.

Trump had previously promised at the Bitcoin 2024 conference that if elected, Bitcoin and cryptocurrencies would soar in an unprecedented way. As for the crypto market, BTC hit a record high as promised, with the price of the currency rising by more than $75,000, an increase of about 10% in 24. Altcoins also ushered in a long-awaited general rise.

It is worth mentioning that Bitcoin rose 3,900% during Trump's last term. It was $898 when he took office and $35,900 on his last day in office.

1. Two-way rush, Trump fell in love with cryptocurrency

Donald John Trump served as the 45th President of the United States. Before entering politics, he was an entrepreneur and media celebrity. Trump, 78, served as president of the United States from 2017 to 2021. He failed to win reelection in 2020 and is making a comeback this time. He is the first president in American history to be impeached twice and the first former president to be criminally convicted.

In July this year, Trump was nominated by the Republican Party as a candidate for the 2024 US presidential election. On November 6, the results of the election came out and Trump was elected by a majority of votes.

Trump won the election and became the second president in American history to be elected twice but with non-consecutive terms.

This year, the crypto industry has contributed a lot of money to Trump, and Trump has also shown a positive attitude towards the crypto industry.

In the second quarter of this year, Trump's campaign team raised $7.5 million in cryptocurrencies.

In August, at the Bitcoin Conference in Nashville, Tennessee, Trump said his campaign team had raised $25 million since it began accepting cryptocurrency donations.

Bitcoin Magazine CEO said: "This is the second highest amount of money Trump has raised in his three presidential campaigns, and the funds come from a combination of industry and whales/OGs."

Trump previously reported that he personally owned between $100,000 and $250,000 worth of cryptocurrency in 2022. According to documents from the Federal Election Commission, his campaign raised a total of $221 million and had $128 million in cash on hand.

Second, crypto attitude and policy planning

Trump criticized cryptocurrencies many times during his last term, saying that they are "not money", based on "castles in the air" and "may promote illegal behavior", and that Bitcoin is a "scam". But during this year's US presidential campaign, his attitude changed 180 degrees.

Trump's representative declarations and promises to the crypto market include: if re-elected, he will replace Gary Gensler, chairman of the Securities and Exchange Commission (SEC), who is critical of cryptocurrencies; if elected, the government will retain 100% of its Bitcoins and keep the United States at the forefront of the cryptocurrency field.

Trump's official store supports Bitcoin payments, including shoes and perfumes.

In addition, Donald Trump Jr., Trump's eldest son, once said that Bitcoin is a means of hedging inflation and authoritarian governments, and recently announced the opening of the Telegram channel "The DeFiant Ones". At the same time, he will also launch a crypto project.

Eric Trump, Trump's second son, said that he will soon launch a crypto project related to "digital real estate", and he once posted that he really fell in love with cryptocurrency/DeFi.

Specific time linear events are:

In early November, Trump congratulated the Bitcoin white paper on its 16th anniversary. He said, "I want to wish our great Bitcoin enthusiasts a happy 16th anniversary of the Satoshi Nakamoto white paper. We will end Harris's war on cryptocurrency, and Bitcoin will be made in the United States!"

In October, Trump once again vowed to "save" Silk Road founder Ross Ulbricht, and reiterated his story and the Silk Road platform that defined the early use of Bitcoin.

In September, Trump said that cryptocurrency companies should have certain security measures and it is important to establish a legal cryptocurrency framework in the United States. He also said, "We will embrace the future with cryptocurrency and leave the slow and outdated big banks behind."

In August, Trump said he was ready to announce a plan to make the United States the world's "crypto capital."

Especially at the Bitcoin 2024 conference, Trump's words highlighted his preference for the crypto industry. He said:

The reason for participating in the 2024 Bitcoin Conference is to keep the United States at the forefront of the cryptocurrency field. The United States will become the global cryptocurrency capital and the world's Bitcoin superpower.

Bitcoin is a "miracle of cooperation and human achievement." If we don't embrace cryptocurrency and Bitcoin technology, other countries will dominate. Bitcoin represents freedom, sovereignty, and a currency that is not forced and controlled by the government.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), will be fired on the first day of his election.

Announced a Bitcoin strategic reserve plan, and if elected, the government will retain 100% of its Bitcoin.

After being elected president, a Bitcoin/cryptocurrency presidential advisory committee will be appointed.

III. Institutional market forecasts after the election

1. Bullish

Bernstein raised the expected price of Bitcoin, and Trump's victory may push it to $80,000 to $90,000. Bernstein analysts predict that if Trump wins the election, the price of Bitcoin may break the historical high and reach $80,000 to $90,000 before the inauguration day (January 20, 2025).

President of The ETF Store: Ethereum ETFs that allow pledges will definitely pass, and Trump's election will accelerate the process. (If) under the leadership of the Trump administration, this will happen faster. In addition, Nate Geraci also said that it is only a matter of time before the net inflow of Ethereum ETFs picks up.

Standard Chartered Bank analyst: Trump's victory will help push Bitcoin to $125,000 by the end of the year. If the Republicans (Trump) win a big victory in the U.S. Congress, the price of Bitcoin will see greater volatility, which could push Bitcoin to $125,000 by the end of the year and trigger a new round of altcoin craze.

2. Bearish

Adjunct professor at Columbia Business School: Trump's presidency may have a "negative" impact on Memecoin. Because they are a "form of economic populism and a statement against unfairness."

He added: "The regulatory sanity of the United States is not good for Memecoins because it refocuses cryptocurrencies on DApps and other things that really matter, leading to a long bear market, and most people have lost money on Memecoins. After venture capital-backed tokens were "forced" to enter the cryptocurrency field due to pressure from Senator Elizabeth Warren and SEC Chairman Gary Gensler, the "Republican sweep" will bring back initial coin offerings, fully open token airdrops and "other token sanity kings." ”

Economist Peter Schiff: Bitcoin may fall due to the "Trump sell-off". As Trump's approval rating rises, Bitcoin has not followed the rise of other Trump-related assets. The reason may be that speculators have bought in advance, resulting in weakened demand. He predicts that Bitcoin may face a "Trump sell-off" and believes that under inflationary pressure, gold's safe-haven advantage is more prominent and it is entering a bull market.

Wealth management company Mirabaud Group: If Trump wins the election, it may bring dividends to cryptocurrencies, but risks also exist at the same time. A potential Trump administration may cancel some of the Biden administration's regulatory crackdowns and launch initiatives such as the National Strategic Bitcoin Reserve to position the United States as a global leader in the encryption field. Trump's loose regulatory approach may attract more investment and innovation into the cryptocurrency field. However, it has also raised concerns about increased fraud risks and insufficient consumer protection.

Swyftx Chief Analyst: Trump's victory may bring "Dopamine shock", but traders should remain cautious.

Conclusion

Trump's victory this time is of great historical significance both to the individual and to the entire crypto industry. Given Trump's previous promises and positive statements to the crypto industry, BTC also broke through the previous historical high on the day of his victory, leaping towards a new horizon. The future of the crypto industry will increasingly have the possibility of reaching or even breaking through larger boundaries.