Booming Trump Trade Signals a Golden Age for Cryptocurrency
A gunshot in a small town of Pennsylvania has essentially changed the 47th US Presidential election landscape. With President Biden announcing his withdrawal, Trump’s influence has already spread across financial markets, from traditional stocks to emerging cryptocurrencies, as everyone anticipates the potential benefits to come.
Trump’s policy stances are expected to positively impact Bitcoin and the future of cryptocurrencies. If re-elected, he plans to reduce government crackdowns on cryptocurrencies and defend the right to mine Bitcoin. It contrasts with the Biden administration’s conservative regulatory approach under SEC Chairman Gary Gensler, who has maintained a cautious stance on cryptocurrencies.
Trump has already demonstrated a pro-cryptocurrency attitude, particularly Bitcoin and stablecoins, compared to Biden. Moreover, Vance, seen by many as Trump’s successor, is a Bitcoin holder himself. If both are elected, we can foresee a White House era that is friendly toward cryptocurrencies.
Trump Trade on the Rise Again
First, let’s clarify two things: Trump Trade is not a new term. It already got spreaded during Trump’s previous tenure, characterized by tax cuts and trade wars, which prompted mixed market reactions. Secondly, Trump Trade has focused more on the stock market, bond market, and commodities, with cryptocurrencies being a smaller size.
During Trump’s last presidency, “Trump Trade” led to a significant rebound in the U.S. stock market, particularly in tech and financial sectors. While there were positives, his policies also increased market uncertainty, especially due to his unpredictable social media statements and foreign policies, making investors wary of the market’s future.
However, following the assassination attempt, tech giants like Microsoft and Meta have shown their support for Trump. For instance, Microsoft is reevaluating the DEI policies. Meanwhile, Meta has lifted all restrictions on Trump’s Instagram account.
As a result of that, supporters like Musk and other tech and financial giants will likely reap significant political and economic rewards. Companies such as Coinbase, Ripple, and Jump, along with venture capitals like a16z, are rounding up funds into the pro-crypto Super PAC Fairshake, aiming to secure long-term influence for the crypto industry.
Market Response
Following the assassination attempt, Bitcoin surged by approximately 5%, and several meme coins like $FIGHT emerged, demonstrating strong market influence. Additionally, tokens like $MAGA, representing Trump’s political ideology, have seen substantial gains. Mainstream cryptocurrencies like Bitcoin have also received a boost from Trump’s support, and if Trump attends the Bitcoin2024 conference as planned, Bitcoin’s price could reach new heights. Some analysts even predict that if Trump wins, Bitcoin might soar to a record high of $150,000.
However, Trump’s team strongly opposes Central Bank Digital Currencies (CBDCs). Trump has expressed concerns that CBDCs could pose potential threats to personal freedom and undermine U.S. financial and economic independence. He advocates for a more robust regulatory framework to ensure the market position of stablecoins like USDT, thereby maintaining the dollar’s control over the crypto world and the global financial market.
Furthermore, during this election, another reason for Bitcoin’s surge is his support for the Bitcoin mining industry. On June 12, 2024, Trump stated during a meeting with leading U.S. Bitcoin miners that he hopes to keep the entire Bitcoin mining industry within the U.S. to ensure this critical industry operates domestically.
A New Era and New Consensus
Trump Trade is not just a fleeting moment. At the recently concluded Republican National Convention, Trump’s new proposal was approved, explicitly promising to defend Americans’ rights to mine Bitcoin, self-custody digital assets, and freely trade cryptocurrencies. Considering the likelihood of Trump being elected and the Republicans controlling both houses of Congress, this platform could very well become U.S. law and policy, shaping the global cryptocurrency landscape.
Whether “America can be made great again” still takes time, but a cryptocurrency bull market is already visible. Trump’s straightforward and aggressive governing style, which previously insist continuous stock market growth and significantly cut taxes, resulted in the 2017–2021 bull market peak. If he makes cryptocurrency market performance a hallmark of his next term, we can expect even stronger supports.
Current Federal Reserve Chairman Jerome Powell, nominated by Trump in 2017, has faced public criticism over Fed rate hikes. However, Trump supports Powell completing his term until May 2026, emphasizing the need to avoid rate cuts before the November elections to ensure monetary tools are available once he takes office.
Moreover, Trump’s running mate, Vance, is a solid pro-crypto advocate. In 2022, Vance publicly supported the crypto industry and was listed as a crypto-friendly figure by Coinbase’s Stand With Crypto initiative. In a 2022 report, Vance held $100,000 to $250,000 in cryptocurrencies managed through Coinbase, indicating a genuine interest in propeling the development of the industry.
Conclusion
While Trump, Vance, and the Republican Party appear fully committed to the 2024 presidential and congressional elections, Vitalik Buterin advises caution in supporting them solely because of their current pro-crypto stance. He points out that political landscapes are unpredictable, and their support might not endure.
