Trump and the Crypto Market

The U.S. presidential elections have ended, and Donald Trump returns as the 47th president of the U.S. With this victory, crypto markets may experience a series of changes.......

Trump's Acceptance of the Crypto Market

Many crypto fans supported Trump over Harris for several reasons. Trump spoke brightly about crypto this year during the election campaign, despite having expressed skepticism for years. 

In Nashville, in July, Trump headlined the largest bitcoin conference of the year. In his keynote speech, the former president said that if he returned to the White House, he would make sure the federal government would never sell its bitcoin holdings.

Trump pledged to maintain the current level of bitcoin holdings that the U.S. has gathered from seizing assets from financial criminals. At present, the US Marshals Service regularly auctions Bitcoin, as well as other cryptocurrencies held in the country's treasury, such as Ether and Litecoin. Sometimes these sales can cause cryptocurrency prices to fall, as happened at the beginning of this year, when Germany began liquidating hundreds of millions of dollars worth of Bitcoin it had seized.

Legalizing the Crypto Market

Perhaps most importantly, Trump promised to remove Gary Gensler, chairman of the Securities and Exchange Commission (SEC), who has filed many lawsuits against crypto projects for allegedly violating securities laws. Gensler is a widely criticized figure in the crypto industry, with many accusing him of stifling innovation.

A change in SEC leadership could allow many more crypto products to enter mainstream financial markets. After bringing Bitcoin ETFs to market in January, soon, under a more crypto-friendly SEC, ETFs based on smaller cryptocurrencies such as Solana and Ripple could be next.

All bitcoins will be mined in America

In June, the largest private and public American bitcoin miners sat down with Trump for discussions. Less than four hours after Trump's roundtable ended, the former president turned to social media to praise the virtues of the bitcoin mining business.

“Biden's hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all remaining Bitcoins to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT!!!” Trump posted on Truth Social shortly after his meeting.

Since then, Trump has reiterated the sentiment several times.

“If crypto is going to define the future, I want it to be mined, minted, and made in the USA”, Trump declared in Nashville.

“We will create so much electricity that you will say: “Please, please, Mr. President, we don't want any more electricity. We can't take it!”, he added.

Musk's support

Many cryptocurrency enthusiasts are also excited by Trump's alliance with Elon Musk, who has long supported cryptocurrencies on social media. On election night, Dogecoin, Musk's favorite meme coin, rose by more than 20%, to 21 cents.

By supporting Trump, Musk made a smart move, because this was like an investment in the success of his own projects during Trump's term. Thus, in the coming years, the price of the Doge cryptocurrency and Tesla shares will have the president's support, which is why they become even more interesting for investors.

The Election Effect

As Trump's numbers showed signs of victory, Bitcoin began to rise, reaching a new record yesterday, exceeding 75.000 USD.

Meanwhile, other top cryptocurrencies also recorded notable gains, including BNB (+5%), Solana (+13,5%), XRP (+5%), Dogecoin (+21,6%), Cardano (+6,6%), Shiba Inu (+ 10%), Avalanș (+12,3%) and Chainlink (+11,4%).

The volume of all stable coins is now 100,92 billion USD, which represents 92,46% of the total 24-hour cryptocurrency market volume, according to data available on CoinMarketCap.

In the last 24 hours, Bitcoin's market capitalization, as the world's largest cryptocurrency, rose to 1,445 trillion USD. According to CoinMarketCap, Bitcoin's dominance is currently 59,86%. BTC volume in the last 24 hours increased by 40,89%, to 59,26 billion USD.

These are big and clear signs that, with Trump's victory, investor interest in the crypto market has suddenly increased...

Crypto Market Expectations

Historically, U.S. elections have acted as catalysts for Bitcoin price movement. Since its beginnings in 2009, Bitcoin's price has endured three election cycles, each followed by a notable increase. A look at these past cycles shows that Bitcoin has never returned to its election day price, and it generated significant gains.

In 2012, Bitcoin's price rose by almost 10.000% in one year after the elections, reaching over 1.100 USD from an initial price of approximately 11 USD.

In 2016, Bitcoin's price rose from approximately 700 USD to 18.000 USD by December 2017, a gain of approximately 3.600%.

In 2020, Bitcoin's price rose by 478%, reaching a peak near 69.000 USD within one year after the elections.

In 2024, if historical patterns continue, Bitcoin's price could see another significant increase. While the size of each subsequent rally has decreased, it is assumed that the next upward trend could offer a gain of 50%-100%, which could push Bitcoin toward the price of 100.000 USD or even 150.000 USD by the end of 2025. This forecast aligns with the decreasing returns observed between cycles.

The shares of companies related to the custody, exchange, and trading of crypto, such as Coinbase, MicroStrategy, or Robinhood Markets, appreciated yesterday and will continue to benefit as crypto traders' trading activities increase.

The shares of American companies that deal with crypto mining, such as Marathon Digital Holdings and Riot Blockchain, will also rise in price if Trump contributes to achieving the idea that all bitcoins must be mined in the USA.

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