- Trump’s presidency could be the best outcome for Bitcoin prices and the crypto market in general.
- We explore how a win would impact Bitcoin’s price action.
The Bitcoin [BTC] The 2024 conference is just hours away and this time there may be more excitement than ever because of one man. Donald Trump, the 2024 presidential candidate who could turn the tide and influence the future of Bitcoin forever.
Trump has spoken out about his support for Bitcoin during his campaign. To the extent that he proposed adding BTC as a dollar reserve. An ambitious plan that strengthens the idea of Bitcoin as digital gold.
But perhaps the biggest question for crypto enthusiasts is how Trump’s presidency (if he wins) will affect Bitcoin prices. Let’s look at the possible price implications.
Pro Bitcoin and crypto regulations
Trump described Bitcoin as a scam just three years ago. Fast forward to the present and he has been baptized and turned into one of the greatest BTC evangelists of 2024.
Recently he preached self-control as one of the things he will advocate for if elected, potentially turning Bitcoin into a reserve currency.
Trump has also chosen JD Vance as his running mate. A remarkable decision because Vance also has a pro-crypto stance. It is therefore likely that the Trump administration will implement favorable regulations that align with their position on Bitcoin.
Proper regulation will not only provide clear guidelines but also help with their ambitions for the US as a leader in crypto. Such an outcome should theoretically have a positive impact on Bitcoin market sentiment and in the long run.
Trump’s economic and political policies
Inflation has been one of the biggest challenges facing the US during President Joe Biden’s administration.
As a result, the cost of living went up. Part of Trump’s manifesto is to pursue more favorable economic conditions by lowering inflation and lowering the cost of living.
Economic policies have a major impact on the price of Bitcoin. This has been abundantly clear over the past three years as excessive liquidity resulting from money printing has increased inflation.
The situation was also exacerbated by Biden’s pro-war stance. A combination of these factors resulted in an environment that was not conducive to risky assets like Bitcoin.
Trump and his policies are seen as pro-business. As was the case during his previous presidency, which was characterized by geopolitical stability.
These factors underline a potentially healthier economic situation for the investor class, meaning liquidity could benefit the crypto market.
The speculation factor
Speculation is one of the biggest factors affecting Bitcoin price performance. Trump’s strong ties to Bitcoin and his pro-crypto sentiment have attracted a lot of attention. Including support from venture capital firms such as A16Z and Andreessen Horowitz.
The alignment of these pro-crypto factors underlines Trump’s current status as a force with the power to influence market sentiment. Take, for example, the recent attempt on his life.
The market recovered after the incident and memecoins were created about him surviving the attempted murder.
Trump’s ratings rose slightly against Biden in the days following the assassination attempt. Which suggests the story was in his favor. However, Kamala Harris has stepped down to replace Biden on the Democratic ticket.
Her poll numbers are comparable to and in some cases even better than Trump’s, indicating that the presidential race may not be a clean sweep for Republicans.
Judging from Harris’ strong campaign, it is also important to evaluate the potential impact if she wins. In that case, Trump’s pro-crypto narrative could ultimately favor the bulls.
However, a victory for Trump could be extremely bullish for the crypto market. Many analysts expect the Bitcoin price to rise to $100,000 if Trump wins. Ultimately, we’ll have to wait the next three months to see how things will develop.