By Key Points
- The industry is seeing Trump’s support for Bitcoin and crypto increase.
- In case he gets re-elected, analysts think favorable crypto regulations may be in the offing.
- Key industry figures are supporting Trump with substantial donations in cryptocurrency.
- This election season could change the crypto landscape through the ‘Trump Trade’.
Donald Trump’s backing of Bitcoin and other cryptos has enabled him to be seen as the most innovation-oriented candidate of all other pro-innovation candidates in the Bitfinex analysis that was conducted recently.
This perception grew even though there wasn’t any mention of Bitcoin or cryptocurrencies during the much-anticipated debate between Donald Trump and Joe Biden, his opponent, who is also a presidential candidate.
According to Bitfinex research, if Trump remains in power, this might lead to a more supportive regulatory framework for cryptocurrencies. It must be noted that under President Trump, creativity and investment by industry players can boost the adoption of digital assets thus integrating them into the overall financial framework.
Industry Support and Public Backing
This saw some prominent names within the industry come out publicly supporting Donald Trump as they viewed him as someone who would provide an enabling environment for digital currencies.
For example, the Winklevoss twins’ recently donated $2 million worth of Bitcoin towards his campaign. Similarly, Jesse Powell, founder of Kraken pledged one million dollars towards the former president’s campaign.
These significant contributions underscore an emerging view within both crypto and traditional finance (TradFi) communities that presumes Donald Trump is an innovation-friendly candidate.
Trump Seen as Pro-Innovation Candidate by #Crypto and TradFi Startups: Bitfinex – #CryptoPotato: Trump Seen as Pro-Innovation Candidate by #Crypto and TradFi Startups: Bitfinex #CryptoPotato https://t.co/oUVm8yfBW8
— Stock Market News (@Stock_Market_Pr) June 29, 2024
Changing Views on Cryptocurrencies by Trump
If you carefully watch how events have unfolded; then you will realize just how remarkable it is to see President Trump who was once viewed so negatively towards digital assets finally starting to embrace them publicly by urging people to send their Bitcoin amounts via official campaign channels during his reelection campaign.
He goes further to refer to himself as “CryptoPresident” confirming his seriousness in developing the industry with a regulatory environment that supports growth.
The Trump Trade and Its Consequences
In 2016, the term ‘Trump trade’ was used to describe the simultaneous rally of US shares, treasury yields, and USD after Donald Trump won the presidential election.
In this case, ‘Trump Trade’ could be interpreted as a turning point for cryptocurrencies, particularly blockchains whose use cases are changing due to expectations of favorable regulations.
Despite no crypto mention during the debate, recent polls show Trump leading hence raising concerns about potential regulatory changes in the cryptocurrency space.
This development can enhance innovation and investments thereby further driving up digital asset growth rates with integration into financial systems likely to follow soon after.
