Trump Returns to the White House, Bitcoin Goes Wild: Crypto Market Embraces the Bitcoin President Era

Trump Returns to the White House, Bitcoin Goes Wild: Crypto Market Embraces the Bitcoin President EraIn the wake of the US presidential election, 78-year-old Republican nominee Donald Trump secured a victory in the 2024 presidential race. This news triggered a frenzy in the cryptocurrency market, driving Bitcoin prices soaring from $68,000 to $76,000, an increase of over 9%

Trump Returns to the White House, Bitcoin Goes Wild: Crypto Market Embraces the Bitcoin President Era

In the wake of the US presidential election, 78-year-old Republican nominee Donald Trump secured a victory in the 2024 presidential race. This news triggered a frenzy in the cryptocurrency market, driving Bitcoin prices soaring from $68,000 to $76,000, an increase of over 9%. Bitcoin has seen a cumulative increase of 70% this year.

Crypto Market Euphoria: Bitcoin Nears All-Time High

Even before the election results were announced, Bitcoin had breached the $73,500 mark, approaching its all-time high. After the election, Bitcoin's surge intensified, briefly touching $76,000 before a slight pullback. At press time, Bitcoin is trading at $75,010.9, with a 2.52% intraday gain.

Beyond Bitcoin, other cryptocurrencies also experienced a collective upswing. Ethereum (ETH) climbed from around $2400 on election day to surpass $2800, stabilizing above this level at press time. Solana (SOL) witnessed a 15% surge over the past 24 hours, reaching around $188.

Meme coins associated with Trump saw even wilder gains. Dogecoin (DOGE) reported a 25% increase in intraday trading, while MAGA and TREMP surged by 20% and 25.2% respectively. In contrast, meme coins related to Harris experienced a significant drop, with HORRIS plummeting 91.6% in the past 24 hours.

The Logic Behind Crypto Market Exuberance

The crypto market's enthusiastic response to Trump's victory stems from investor expectations regarding his policies. While Trump previously expressed skepticism about Bitcoin, labeling it a "scam," he has since publicly advocated for crypto assets after leaving office. During his campaign, Trump's campaign was the first to accept cryptocurrency donations, promising to transform the US into the "cryptocurrency capital," advocating for reduced regulatory hurdles, and pushing for the US to become a global hub for Bitcoin mining and crypto innovation.

"I will ensure that the United States becomes the global crypto center and the Bitcoin superpower," Trump declared at the 2024 Bitcoin Summit, adding that if he returned to the White House, he would designate Bitcoin as a strategic reserve asset for the US.

Beyond this favorable stance, Trump has personally engaged with the crypto sector. NFTs featuring his likeness sold out immediately upon launch, and the DeFi project operated by the Trump family has also generated considerable buzz within the industry.

The Impact of Trump's Crypto Policies on the Market

"Trump has unequivocally stated during his campaign that, upon assuming office, he will push for innovation in crypto assets and create a more relaxed environment for the industry by easing regulations," says Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association.

If this plan is implemented, it would have a profound impact on the crypto asset market. It would not only further solidify Bitcoin's position as "digital gold" but also strengthen market confidence in Bitcoin, encouraging other nations to reassess Bitcoin's value and status, thereby potentially ushering in a significant turning point for the global crypto market.

The Direction of Future Crypto Market Development

"The regulation and mainstream adoption of crypto assets will be key areas of future development," Yu Jianing notes. "We could see more cross-border collaborations and product innovation, including the integration of crypto assets with traditional assets, increased use of stablecoins, and the launch of more crypto asset ETFs."

Overall, the election outcome will set the tone for the future of the crypto market. Over the coming years, the crypto industry will navigate a path between policy support and regulatory pressures, ultimately aiming for greater maturity and resilience.

The Political Influence of the Crypto Industry in the US

Beyond policy expectations, the role of the crypto industry in the US election also deserves attention. The crypto industry has emerged as a significant force in American politics. Key players in the crypto space, including Coinbase, Ripple, and Andreessen Horowitz, have contributed substantial funds through Super Political Action Committees (PACs) in this election.

Among these, the Fairshake PAC, a group advocating for crypto assets, has become a prominent source of election funding. Data reveals Fairshake to be the largest Super PAC in this election cycle, having amassed over $200 million.

In the 2024 election polls, 48% of potential US voters agree that "reducing reliance on banks and embracing technological innovations in finance, including automation, will lead to a fairer global economy." The same poll also indicates growing interest in crypto ownership and investment.

Shifting Roles of the Crypto Industry

"The role of the crypto industry in this US election is a landmark milestone, demonstrating its increasing influence in the economic and political spheres," observes Yu Jianing. "Previously, crypto assets were primarily discussed as a new technology and asset class, but in this election, the interests and policy demands of the crypto industry have permeated the policy debates and electoral strategies of both US political parties."

"It's foreseeable that the crypto industry will exert a profound impact on the American political system across various aspects, including policy discourse, legal framework development, and economic policy formulation. This marks a significant shift for the crypto industry from its early days as a peripheral innovator to becoming a core interest group, enhancing its influence and bargaining power."

Could Cryptocurrency Regulation Be Loosened?

Throughout his campaign, Trump repeatedly emphasized that if he were elected president, he would propel the US to become the global center of cryptocurrencies and relax regulations on the crypto industry.

However, during his previous term, Trump expressed skepticism towards Bitcoin, calling it a "scam" and expressing concerns about its volatility. Under Trump's leadership, the US Securities and Exchange Commission (SEC) initiated enforcement actions against several projects, accusing them of failing to register as securities sales. Moreover, the Trump administration intensified scrutiny of crypto trading platforms to ensure their compliance with existing securities laws.

Trump's shift in attitude towards crypto and his campaign pledges have fueled market anticipation regarding the crypto policies of the new US administration.

The Impact of the US Election on the Crypto Market: A Pros and Cons Analysis

Trump's return to the White House presents both opportunities and potential risks for the crypto market.

Advantages:

• Crypto regulation may be relaxed, creating a more conducive environment for industry growth;

• The US could become a global crypto hub, attracting more investments and talent;

• Bitcoin could be included in American strategic reserves, boosting its status and value.

Risks:

• Trump's policy promises may not be fully realized;

• Changes in regulatory policy could lead to market volatility;

• The crypto industry still needs to overcome technical and regulatory hurdles.

Conclusion:

Trump's return to the White House has brought new opportunities and challenges for the crypto market. Regardless of what lies ahead, the crypto industry has become an undeniable political force, and its future development will be profoundly influenced by the policy and regulatory environment.

Over the coming years, the crypto industry will navigate a path between policy support and regulatory pressures, ultimately aiming for greater maturity and resilience.