Trump's Promises Are Making Waves in Cryptocurrency Circles. What Lies Ahead?

Moomoo News Global joined discussion · 20 hours ago

Trump delivered an energizing speech at the Bitcoin 2024 conference in Nashville on Saturday, sending waves of excitement through the crowd, particularly when he proclaimed, 'Bitcoin and crypto will skyrocket like never before, beyond your expectations, and you are the people making it happen. When America prospers, Bitcoin soars with it.' Following the speech, the cryptocurrency market reacted with optimism, as the price of Bitcoin climbed 2% on Monday, surpassing $69,000.

Key insights from Trump's speech that have the crypto community buzzing include:

· Trump's affirmation that the U.S. will retain all the bitcoins it currently holds. By reserving approximately 210,000 bitcoins, or 1% of Bitcoin's total supply, the U.S. would become the first country to formally include Bitcoin in its national strategic reserves, granting it a strategic status akin to that of gold.

· A promise to dismiss SEC Chair Gary Gensler on Day 1 of taking office. 'I will appoint a crypto-friendly SEC chairman who believes America should build the future, not block it,' Trump stated.

· The announcement of a new Bitcoin Presidential Committee, tasked with shaping U.S. crypto policies and protecting Bitcoin-related jobs, with a commitment to steer clear of introducing a Central Bank Digital Currency (CBDC) during his term.

· A pledge to support the digital currency mining sector by enhancing power generation with a focus on fuel, nuclear, and other eco-friendly methods, exploring potential collaboration between the crypto and electric vehicle industries.

On the other hand, the Harris team has reportedly been actively engaging with key figures from major crypto firms such as Coinbase, stablecoin company Circle, and blockchain payment company Ripple Labs. This move indicates Harris's intention to engage in productive dialogue with the industry and develop a regulatory framework supportive of cryptocurrency growth. Her approach is seen as an attempt to gain industry support and counter Trump's strong momentum in the sector.

Harris's progressive stance on crypto aligns with her history as a Senator from California, an advocate for Silicon Valley's innovation. Moreover, her husband, Douglas Emhoff, is reportedly a 'crypto guy,' according to Fortune, which adds a personal dimension to her policy interests.

Outlook For Bitcoin Prices

The recent developments suggest that regardless of the outcome of the upcoming election, whether it favors Trump or Harris, the Bitcoin industry is poised for a significant boost. Aside from the favorable 'Trump trade' and 'Harris trade' scenarios, several other factors could potentially bolster Bitcoin's price:

1. The market consensus is that rate cuts, expected to begin in September, will increase fiat liquidity, fueling demand for riskier investments like Bitcoin. The impact of such monetary easing on asset valuations could be particularly pronounced during a time of subdued inflation and economic prosperity. Reflecting on past trends, Bitcoin rallied by nearly 300% during the last cycle of monetary easing.

Trump's Promises Are Making Waves in Cryptocurrency Circles. What Lies Ahead?

2. The halving event on April 20th introduced price volatility, but if demand remains steady, the reduced block rewards could ultimately drive Bitcoin's value higher. Historically, Bitcoin has endured about four months of post-halving volatility before embarking on a significant bull run, hinting at a potential uptick from August onwards.

3. Furthermore, Bitcoin's price follows a distinct four-year cycle, often peaking in the year after a halving event. Historically, it trends upward for three years and dips in the fourth. Recently, Bitcoin experienced a 157% rise in the year before the halving and has already gained over 50% this year. If historical patterns persist, Bitcoin's value may continue to climb.

Stocks and ETFs to Watch Following Trump's Speech

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Crypto stocks have shown strong performance this year. The Bitcoin HODL company $MicroStrategy(MSTR.US)$ has excelled with a 177% increase in its stock price since the beginning of the year, outperforming even Nvidia. Mining companies like $TeraWulf(WULF.US)$ and $Cipher Mining(CIFR.US)$ have seen surges of over 40%, while the trading platform $Coinbase(COIN.US)$ has also enjoyed a near 40% rise. It's important to note, however, that the performance of crypto stocks does not always track Bitcoin's price movements and typically exhibits greater volatility than Bitcoin itself.