Biden withdraws, Trump backs Bitcoin, Ethereum ETF approved: digital asset concept stocks are expected to dominate US stocks

This year, turbulence in US politics and financial markets intertwined to form an unprecedented force driving the digital asset market. This series of events, including Biden's withdrawal, Trump's public support for Bitcoin, and the US Securities and Exchange Commission (SEC) approval of Bitcoin and Ethereum ETFs, is pushing digital asset concept stocks to the forefront. This article will explore in detail the background of these events and their potential impact on the US stock market, particularly digital asset concept stocks.

The news that Biden announced his withdrawal from the election shocked American politics and the international community. Since winning the general election in 2020, Biden has faced many challenges in dealing with the COVID-19 pandemic, economic recovery, and foreign policy. Recently, Biden decided to withdraw from the election due to health issues and pressure from administration, which added huge uncertainty to the Democratic Party in future elections.

Biden's withdrawal from the election made the Democratic Party need to quickly find a candidate who can unite all factions within the party and have strong competitiveness in the general election. On the Republican side, former President Trump continues to dominate the political situation within the party with his highly controversial style and strong support base.

Trump has been critical of Bitcoin and other digital currencies during his term, believing that they are tools of fraud and may threaten the US financial system. Recently, however, Trump's attitude has changed markedly. He has expressed his support for Bitcoin many times in public, calling it a “model of modern financial innovation,” and advocating the integration of digital currencies into the mainstream financial system.

On July 25, 2024, Trump delivered an important speech at the 2024 Bitcoin Conference (Bitcoin 2024) in Nashville, focusing on the future of Bitcoin and digital currencies. Here's a summary of the presentation:

Trump announced that Bitcoin will be viewed as an important strategic reserve asset. He emphasized the growing importance of Bitcoin in the global economy, believing that it has great potential as a reserve asset and can provide greater financial stability for countries and businesses.

Trump expressed strong support for Bitcoin and other digital currencies, calling it an important result of modern financial innovation. He believes that Bitcoin and other digital assets will lead the future financial revolution and become an important part of the global financial system.

When talking about regulation, Trump stated that it is necessary to find a balance between regulation and innovation. He called on governments to develop reasonable regulatory frameworks to protect investors' interests without stifling technological innovation and market development. He specifically mentioned that the US will play a leading role in this regard to ensure that the development of fintech is properly supported and regulated.

Trump emphasized the importance of popularizing digital currency knowledge and education. He called on all sectors to increase public education so that more people understand and accept the advantages and methods of using Bitcoin and other digital currencies. He believes that education will be an important driving force for the widespread adoption of digital currencies.

In his speech, Trump talked about the security and technological advancements of Bitcoin and blockchain technology. He pointed out that blockchain technology's distributed ledger has a high degree of security and transparency, and will greatly improve the efficiency and safety of financial transactions. At the same time, he also emphasized the importance of continuous technological innovation and encouraged more enterprises and research institutes to invest in the development and application of blockchain technology.

Trump predicts that Bitcoin and digital currencies will have a profound impact on the global economy over the next few years. He believes that digital currency will drive the transformation of the global payment system, reduce cross-border transaction costs, and promote the development of international trade. At the same time, he also mentioned that digital assets such as Bitcoin will provide investors with new investment opportunities and wealth enhancement channels.

Finally, Trump called on policymakers to support the development of digital currencies. He recommended that the government adopt positive policy measures to encourage innovation and investment in the blockchain and digital currency sector. He believes that through reasonable policy guidance, the US can take a leading position in the global digital currency market and promote further economic prosperity.

Trump's shift in attitude may have multiple motivations. On the one hand, the popularity of digital currencies and the development of blockchain technology have become irreversible trends, and supporting digital currencies can win the support of young voters and technology enthusiasts. On the other hand, Trump may have seen the strategic value of digital currencies in international financial competition, particularly in the context of countering the weakening hegemony of the US dollar.

The SEC approved the first Bitcoin and Ethereum ETF, a major milestone in the digital asset market. Bitcoin and Ethereum are the two cryptocurrencies with the largest market capitalization. Their ETFs not only provide investors with a more convenient and regulated investment tool, but also mark the further maturity and mainstream of the digital asset market.

In addition to traditional brokerage firms such as Yingtou, Futu, and Jiaxin, emerging brokerage firms such as BiyaPay also support stock trading. BiyaPay is an innovative multi-asset trading wallet designed to meet the diverse needs of modern investors. It not only supports digital currency trading, but also allows users to trade stocks in the US and Hong Kong stock markets. Users can use USDT to trade various digital currencies through the BiyaPay platform. At the same time, they can participate in US and Hong Kong stock trading in real time without applying for an offshore account to achieve flexible access to funds. BiyaPay perfectly combines coin trading and stock trading functions in one account, streamlining the investment process and enabling users to manage and optimize their global investment portfolios on one platform. Through this multi-functional comprehensive service, BiyaPay provides users with a more convenient and efficient investment experience.

The launch of Bitcoin and Ethereum ETFs is expected to attract a large number of institutional and retail investors to the market. Compared to directly buying and holding cryptocurrencies, the ETF format is more in line with traditional investors' operating habits and risk management needs. The liquidity and transparency of ETFs also help improve the stability and trustworthiness of the market and further promote the development of the digital asset market.

Digital asset concept stocks refer to companies closely related to blockchain technology, cryptocurrencies, and related services. These companies include, but are not limited to, cryptocurrency trading platforms, blockchain technology developers, mining machine manufacturers, payment processing companies, and investment management companies.

Biden's withdrawal, news of Trump's support for Bitcoin, and approval of Bitcoin and Ethereum ETFs have attracted a great deal of attention to digital asset concept stocks. These stocks may become the highlight of the US stock market this year, attracting a large influx of capital.

Trading platforms such as Coinbase (COIN) and Kraken, as the main entrances to the digital currency market, will directly benefit from the rise in market popularity. Increased investor interest in Bitcoin and Ethereum is expected to drive significant growth in trading volume and platform revenue.

Companies such as IBM, Microsoft (Microsoft), and Riot Blockchain are leading the way in the development and application of blockchain technology. As more businesses and government agencies explore blockchain technology, the demand for these companies' technical services will increase dramatically, driving their stock prices higher.

Mining machine manufacturers such as Bitmain (Bitmain) and Canaan occupy an important position in the cryptocurrency mining hardware market. The popularity of Bitcoin and Ethereum will increase the demand and sales volume of mining machines, which in turn will drive the company's performance growth.

Payment processing companies such as PayPal and Square (now Block, Inc.) have begun supporting cryptocurrency transactions and payments. As market acceptance of digital currencies increases, these companies are expected to increase revenue by expanding their business and increasing their user cohort.

Investment management companies focused on digital assets, such as Grayscale (Grayscale) and Galaxy Digital, will attract more institutional investors who want to enter the market through ETFs and other investment vehicles. The increase in managed assets will be directly reflected in the increase in the company's earnings.

Although digital asset concept stocks have shown huge potential for growth, investors still need to be aware of the risks and challenges involved. Market volatility, regulatory uncertainty, technical risk, and competitive pressures are all factors to consider.

The cryptocurrency market is known for its high volatility, and large price fluctuations may have an impact on related stocks. Investors should have strong risk tolerance and market sensitivity.

Although the approval of Bitcoin and Ethereum ETFs marks a positive change in the regulatory environment, there is still uncertainty about regulatory policies around the world. Any new regulatory measures or policy changes could have a significant impact on the market.

Blockchain technology and the cryptocurrency market are still rapidly developing and changing, and technological updates and security breaches may present potential risks. The company needs to continuously innovate and improve safety protection measures.

As the market expands, more companies will enter this space, and competition will become more intense. Existing companies need to continuously improve their competitiveness in order to maintain their leading position in the market.

Biden's withdrawal, Trump's support for Bitcoin, and approval of Bitcoin and Ethereum ETFs mark a series of major changes in politics and financial markets that could have a profound impact on the digital asset market and the US stock market. Digital asset concept stocks are becoming the focus of investors' attention, showing huge potential for growth. However, while seizing these opportunities, investors also need to carefully assess the associated risks and challenges.

In this dynamic context, the digital asset market and related stocks are likely to be the biggest winners in the US stock market this year. Whether it's a long-term investment or a short-term transaction, digital asset concept stocks offer investors a wealth of opportunities and potential. Facing this opportunity, investors need to maintain keen market insight and sound investment strategies to succeed in a rapidly changing market.