Donald Trump’s victory signaled a vital shift in cryptocurrency sentiment: from cynicism to defiant belief in the growth of cryptocurrencies in the US.
Cryptocurrency Will Witness Huge Growth Under a Trump Presidency
Cryptocurrency exchange Bybit and Blocks Schools have published their latest institutional report with key findings from the US election and the cryptocurrency market’s reaction to America’s first “crypto president”.
The publication notes that institutional investors have become more willing to purchase more Bitcoin when economic conditions are promising, and that potential rate cuts are positive for Bitcoin’s future given its growing connection to macro assets. The report’s analysis also found that Bitcoin ETFs are a major driver of institutional adoption of Bitcoin.
Examining Donald Trump’s path to victory, the analysis examined Trump’s stance on Bitcoin and the crypto industry, marking this election cycle as the first in which cryptocurrency played a major role.
Crypto companies have used cryptocurrency political action committees (PACs) like Fairshake to donate nearly $119 million to 2024 federal campaigns. This influx of cash accounted for 48% of all corporate funds used in elections, illustrating the industry’s growing power and role in politics. . As a result, several newly elected members of both chambers of the 119th Congress are expected to play important roles in redefining the regulatory environment for cryptocurrencies and digital assets.
Thanks to President Trump’s support for the crypto industry, the price of BTC rose from around $70,000 to over $95,000 in a matter of weeks after the election. This volatility is seen as a broader reflection of market emotions that correspond to positive political developments rather than simply being speculative.
Due to Bitcoin’s dominance in the cryptocurrency market with over 50% market share, BTC’s rally is often linked to the possible rise of altcoins such as SOL and ETH. Bitcoin’s dominance has historically peaked during bull markets, after which investors move their money into altcoins in search of greater returns.
The report concludes by examining the drivers of cryptocurrency markets in the post-election fourth quarter of 2024, from the pace of rate cuts by the Federal Reserve to regulation of digital assets becoming more transparent and beneficial under a Republican-controlled US Congress, which will help spur investment and innovation in the industry. .
