How Trump’s Victory Could Impact the Crypto Market: What to Expect Next?

The New Promise

July 8, 2024, offered a turning point for a struggling cryptocurrency market when Donald Trump voiced strong support for digital assets. Speaking at the Nashville Bitcoin conference, Trump stated that his administration would regard Bitcoin as a strategic asset and outlined an ambitious vision to transform the U.S. into the ‘crypto capital of the world.’

Real Shift or Political Strategy?

Trump’s recent endorsement of cryptocurrencies starkly contrasts with his prior stance. During his first term, he labeled Bitcoin ‘not money’ and criticized its volatility, with his administration adopting an anti-crypto policy stance that included a significant lawsuit against XRP.

Now, however, financial disclosures reveal Trump’s personal crypto holdings exceeding $1 million, a marked shift in his position. While this sum is relatively small within his $5.8 billion net worth, it nonetheless reflects an interesting new alignment with the crypto space.

Image credit: James Devaney/GC Images|istock/Getty Images

Promising Policies Ahead

If Trump’s campaign promises are any indication, the crypto market is poised for a significant paradigm shift. During his campaign, Trump outlined several crypto-friendly policies that have excited investors and industry insiders:

1. Ousting SEC Chair Gary Gensler:

Trump pledged to remove Gensler on his first day in office, as Gensler has faced criticism from the crypto community for his stringent regulatory approach.

2. Establishing a Bitcoin and Crypto Presidential Advisory Council:

This council aims to create rules that support the industry.

3. Creating a Strategic National Bitcoin Stockpile:

This proposal could elevate Bitcoin’s status as a national asset.

4. Supporting U.S.-based Bitcoin Mining:

Trump aims to make the U.S. a global leader in crypto production.

5. Preventing the Federal Reserve from Creating a Central Bank Digital Currency (CBDC):

This addresses concerns about government control over digital currencies.

Trump’s close relationship with billionaire Elon Musk, a major crypto advocate, further fuels speculation about potential pro-crypto policies.
Musk’s influence could shape Trump’s approach to digital assets and positively impact regulatory trajectories.

Predictions for 2025 and Beyond

The cryptocurrency market is brimming with optimism ahead of 2025, and analysts are making bold predictions.

• Notably, Standard Chartered‘s Geoffrey Kendrick foresees Bitcoin potentially reaching between $150,000 and $200,000 by late 2025.
• Research and brokerage firm Bernstein aligns with this, predicting Bitcoin could hit $150,000 within the same timeframe.
• Adding even more speculation, Robert Kiyosaki, author of Rich Dad Poor Dad, has set his sights even higher, predicting Bitcoin could surge to an astounding $500,000 by late 2025.

Yet, not all projections are sky-high.

• Amid the exuberance, the Bitcoin Fear and Greed Index has hit “extreme greed,” a warning that market volatility might be around the corner.
• CryptoQuant CEO Ki Young Ju suggests Bitcoin’s price could dip by year-end, forecasting a more conservative $58,974 as a realistic target.
• Analyst Michaël van de Poppe also cautions that an increase in leveraged futures positions could trigger short-term volatility, with an initial pullback likely before a sustained rally.

What to Expect Next?

The crypto community is keenly observing whether Trump will follow through on his promises. With many of his proposed policies echoing the desires of crypto enthusiasts, the future looks promising—yet uncertainty looms.

Should Trump act swiftly on his commitments, the market could experience significant growth and cement the U.S. as a crypto-friendly nation. Delays will disappoint and could cause a sharp drop in prices.