Despite the fact that the old man of bitcoin is steadily approaching the $90,000 mark and there is a significant excitement in the market, experts disagree on the impact of Donald Trump’s presidency on the cryptocurrency.
Donald Trump was elected President of the United States for the second time. But he cannot lead the country yet. The 47th American president will be inaugurated on January 20, 2025. Until then, Joe Biden will remain the head of state, and Kamala Harris will be the vice president.
The 78-year-old Trump will be the first former president to return to this position in more than 130 years of American history, as well as the oldest man to become President of the United States. It is interesting how his views on digital assets have changed dramatically in a few years (apparently, it is not about Crypto industry spent more than $130 million on elections).
On the eve of the 2020 election, Trump strongly criticized cryptocurrencies for potential use in illegal activities.
«I am not a fan of bitcoin (BTC) and other cryptocurrencies, which are not money and their value is highly volatile and based on nothing. Unregulated cryptoassets can facilitate illegal behavior, including drug trafficking and other illegal activities», — wrote he is in X.
Also, in 2021, the Republican called bitcoin as a fraud and said that it was «dangerous because it was trying to create a level of trust in an unreliable and completely unjustified currency».
«Bitcoin seems like a scam to me. It’s another currency that competes with the dollar, so I don’t like it».
But before this year’s election, the politician underwent a dramatic change, and Trump actively positioned himself as a pro-cryptocurrency presidential candidate. First, the Republican began accepting payments to support his campaign in crypto, and then launched his crypto platform. Moreover, Trump promised to make the United States the crypto capital of the planet and a bitcoin superpower. And to begin with, a bill has already been drafted, within the framework of which it is proposed to purchase 1 million bitcoins within 5 years to replenish the US national reserve.
«For too long, our government has broken the basic rule that every bitcoiner knows by heart: never sell your bitcoin», — said Trump during his keynote speech at the largest bitcoin conference in 2024 in Nashville.
Populism? Perhaps. But the crypto market reacted very strongly to Trump’s promises. Even as the votes were being counted, BTC set a record by exceeding $75,000, andof cryptocurrency-related companiesMicroStrategy and Robinhood Marketshave increased sharply, associated with Elon Musk Dogecoin (DOGE) has jumped by 25%. And now there is something similar to a bull market…
Bitcoin has already updated another record at $89,000 and now analysts’ forecasts of a price of $100,000 in November no longer seem so unrealistic. Altcoin prices are also slowly creeping up.
Even experts from the research and brokerage company Bernstein they say that the bull market is already here, and investors should «buy everything they can».
However, Tim Krawczunowski, founder and CEO of the decentralized telecommunications network Chirp, advises against rash moves.
«If he doesn’t fulfill these promises quickly, euphoria could give way to disappointment, which could lead to volatility in the crypto market. We have to be prepared for this because cryptocurrency is not the most important issue on Trump’s current agenda», — he said in an interview with TIME.
General Counsel of a16z crypto company Miles Jennings believes that the crypto industry should prepare for more lawsuits and pressure from the SEC in the near future while Gensler is still in power.
Over the next few months, he expects to hear a lot of speculation and «hot takes» about what will happen from a legislative and regulatory perspective — the vast majority of which will be just noise.
«It is actually too early to say how things will turn out, but we do know that it is very important for the industry», — reportedin a16z crypto.
Also, the founder of ITC Crypto Benjamin Cohen warned that in late 2024-early 2025, it could happen a sharp drop in altcoins as has happened before. Only then will growth begin, which can truly be called a full-fledged bull market.
In addition, cryptocurrency prices are highly dependent on global events, such as Russia’s invasion of Ukraine, and macroeconomic trends.
The new administration’s approach to regulation, financial inclusion, and international cooperation will determine the US position in the global digital economy. But first, critical issues need to be addressed: