Bitcoin hit a new record high on November 6, riding a wave of optimism from investors who view President-elect Donald Trump’s victory as a boost for the crypto market.
In early trading, Bitcoin climbed 8%, hitting a new all-time high above $75,000, shattering its previous record from March. The cryptocurrency held on to most of its gains, hitting a new high late Wednesday afternoon when it surpassed $76,000.
Other major cryptocurrencies joined the rally, including Ethereum, the second-largest digital currency, which jumped 8% from Tuesday evening to Wednesday morning before gaining another 8.5% from Wednesday morning to Thursday after. noon. Dogecoin – frequently touted by billionaire Elon Musk, a top Trump supporter – is up 29%. However, the meme token gave up most of its gains on Wednesday and Thursday.
Trump’s stance on deregulation, tax cuts, and abandoning centralized financial institutions like the Federal Reserve allowed crypto enthusiasts to see opportunities. Many believe his support for these risky assets fueled the recent crypto rally.
So what can crypto investors expect in a second Trump presidency?
Here’s where President-elect Donald Trump stands on cryptocurrency — and what it could mean for markets in the future.
Trump adopted cryptocurrency before the election
Trump, who once expressed skepticism of cryptocurrencies, spent much of 2024 positioning himself as the pro-crypto presidential candidate.
Trump’s current stance on crypto is a major shift from his last term as president. In the summer of 2019, Trump criticized cryptocurrency on social media, saying it could be used to facilitate illegal activities. And during his presidency, the Trump administration’s regulatory actions included the SEC’s controversial lawsuit against Ripple.
But Trump changed his mind in 2024, aiming to win over a bloc of single-issue voters and – perhaps more crucially – big donors in the cryptocurrency world.
In July, at a major cryptocurrency conference in Nashville, Tennessee, Trump said he wanted the United States to become the “crypto capital of the planet” and the Bitcoin “superpower of the world.”
Trump’s campaign accepted Bitcoin donations throughout the race, and in September, Trump made headlines after paying for a meal at a New York tavern in Bitcoin. His vice presidential running mate, Sen. JD Vance (R-Ohio), is also a longtime crypto advocate.
The Republican National Committee even included cryptocurrency in its official party platform released before the election, saying Trump would defend the right to mine Bitcoin and “ensure that every American has the right to keep their own money.” digital assets and transact without the government.” Monitoring and control.
Trump’s Proposed Crypto Policies
At the Bitcoin 2024 conference in Nashville, Trump detailed a set of crypto-friendly policies. He also claimed that the price of Bitcoin would skyrocket under his administration.
Some of Trump’s crypto policy proposals include:
- Create a government stockpile of Bitcoin: During the conference, Trump noted that his administration would “retain 100% of all Bitcoin that the U.S. government currently holds or acquires,” adding that the digital currency would act as “the core of the national strategic stockpile of Bitcoin.” It is estimated that the US government held more than $5 billion worth of Bitcoin as of October 2023, much of it seized as part of criminal investigations. However, it’s unclear what the stock would be used for, if it’s realistic, or if it’s even welcomed by the crypto industry as a whole.
- Create a crypto advisory board: In Nashville, Trump proposed launching a group called the “Presidential Advisory Council on Bitcoin and Crypto,” which would have rules “written by people who love your industry and don’t hate your industry.”
- Stop the Federal Reserve from creating its own digital currency: Central bank digital currencies, known as CBDCs, are a growing trend in the rest of the world, but the idea has received significant pushback from the US cryptoverse. The Fed has not yet decided whether or not it will create a fully digital version of the U.S. dollar, although it released a highly anticipated report in January 2022 detailing the potential costs and benefits. Trump has spoken out against the idea several times in 2024, including at a January campaign rally in New Hampshire, where he called it “a dangerous threat to freedom.” In May, the House passed a bill that would prohibit the Federal Reserve from creating a CBDC.
What a Trump Presidency Could Really Mean for Crypto
Unsurprisingly, many experts in the cryptocurrency world are optimistic that Trump will soon return to the White House.
Adam Blumberg, co-founder of Interaxis, a company that provides cryptocurrency and blockchain training for financial advisors, believes the administration will bring clarity to the still-murky regulatory landscape for digital currency.
“I think we will see stablecoin legislation, which will lead to more people transacting on the blockchain,” Blumberg says, referring to the technology behind cryptocurrency. “We will also see projects where tokens are not considered security, so teams will not worry about launching.”
Trump has also repeatedly pledged to fire Gary Gensler, current chairman of the Securities and Exchange Commission (SEC), who presided over the outgoing administration’s efforts to regulate the crypto industry.
However, Trump’s recent alignment with cryptocurrency may prove ethically questionable.
Trump’s latest business venture, World Liberty Financial, is a project described as a decentralized finance (DeFi) money market, or platform where people can borrow, lend, and earn interest on crypto.
A previous white paper on the company indicated that it would feature a new cryptocurrency called $WLFI that would be sold to the public, according to the New York Times.
Trump announced the project on September 16 during a live broadcast on X, accompanied by his son Donald Jr. and executives behind the company, including Chase Herro and Zachary Folkman. World Liberty Financial was officially launched the following month, just weeks before the election.
Trump’s involvement in the crypto project raises ethics concerns now that he has been re-elected president. Conflicts of interest, including its influence over crypto regulation and the potential for market manipulation, could have a direct impact on cryptocurrency – and one’s financial stake in it.
“No one on the Republican side is ready to oppose Trump right now, so they’re going to propose and vote (for) the rules he wants,” Blumberg said.
Conclusion
Trump’s embrace of digital currency could prove favorable for investors and industry executives who covet looser regulations. But ethical concerns over the recent launch of its World Liberty Financial cryptocurrency project are expected to intensify after Trump takes office.
