How Donald Trump is Starting to Influence Digital Assets
Did you ever think Donald Trump would have such an influence on digital assets? You should – he’s got his finger in every pie, generating a whopping $6.1 billion. And with the 2024 US presidential election on the horizon, people are noticing a correlation between Donald Trump and digital assets with everything from people wanting to buy NFT assets to cryptocurrency exchange fluctuation.
Read on to find out more.
The Trump Effect on Bitcoin
The largest cryptocurrency by market capitalization, Bitcoin, has seen steep price trends in reaction to political debates for the election, specifically anything close to President Donald Trump.
Bitcoin rose as much as 5.7% in one day to $63,768. This spike was driven by growing wagers on the likelihood that Trump will win re-election in November. Some analysts see a potential path to its all-time high of $73,798 if Bitcoin can clear the hurdle at $65,000.
As the odds of a Trump victory continue to increase, those results become more certain and lift stocks – and therefore Bitcoin – higher. MarketVector reports show some people are skeptical about this theory but assert that it sounds logical.
The “Trump trade,” an investing rulebook that outlines how markets are supposed to react under President Donald Trump based on his policy preferences and foibles in governance obligations, was driving much of the action.
The Effect of the Trump Trade on Cryptocurrency Markets
The “Trump trade” referred to an economic scenario in 2016 that saw US stocks, treasury yields, and the dollar all outperform after Trump won his election. Now, it seems as though crypto could be the new form this runs on. With Trump openly behind the cryptocurrency industry, the environment is well established to be influenced by his policies and pronouncements.
A Trump presidency might very well lead to large US fiscal deficits as investors begin pricing higher odds. Donald could implement his proposed tax cut extensions and introduce (at least partially) increased trade tariffs, for example. The crypto markets will be influenced by this economic backdrop as well. Trump’s campaign also began accepting donations of Bitcoin (BTC), Ethereum (ETH), and Litecoin on May 22.
The Crypto Community and Trump
It is interesting to see Trump’s relationship with the crypto world. He was a Bitcoin hater back in the day, saying they were running scams and trading them would hurt the US dollar. Still, his position has mellowed quite a bit, and he is now fully on board with the industry.
Trump has also recently spoken with crypto-mining executives, presenting himself as a crypto president. Heavy hitters in the crypto space have gotten behind this new option. The co-founders of Kraken – also founder of Gemini – donated millions to the Trump campaign. The endorsements and financial support also underscore an increasingly influential political force.
The Crypto Voter Demographic
The crypto voter demographic isn’t small – it could shape elections.
One-third of adults in the US held some amount of cryptocurrency by 2022, according to a study published in the new publication. The group is a broad population of ideology and identity politics,’ which they see as fruitful ground for November.
The upcoming 2024 presidential election only brings more light to the crucial role of crypto policies. It is said that President Joe Biden had to take a step back from his previously firm stance on digital assets due to the pressure of Trump’s pro-crypto. Another example is a recent veto by Biden on the employee accounting bulletin proposed at the SEC to allow financial institutions to custody cryptocurrencies.
The Trump Effect on Crypto Regulation
If Trump returns to the House, it could create a new future for digital asset regulation.
The sector has responded favorably to his pledges, with expectations for a more industry-positive regulatory environment spurred by the US crypto miners, and reductions from all sectors also influencing results. If it happens in the next few years, such a move could mean massive developments and investments. The Trump method, as designed, will encourage a free market for cryptocurrencies, opening the door to US dominance over digital assets.
Although Trump’s support for digital assets is beneficial and welcomed by community members, he goes beyond mere policy. His upcoming NFT collection will come after his last three collections, which sold out immediately. He is among the few politicians who take a proactive stance on NFTs and cryptocurrencies, so his influence could encourage other political figures in mainstream politics to see things from a similar perspective. It’ll be exciting to see how his latest release of his NFT project goes considering the NFT market isn’t what it was.
What do you think about Donald Trump’s influence on digital assets? His influence is being felt in numerous ways. Still, some people think it’s just a coincidence, but it doesn’t seem like much of a coincidence when you consider Trump’s backing of digital assets and currency. With the crypto market, they’ll be looking closely at anything he does because of what it might mean for a future filled with cryptocurrencies as we get closer to 2024. Let’s see what the election brings in November.