Trump Becomes the 47th US President: Potential Impacts on the Crypto Market 🚀📈

With Trump now elected as the 47th US president, he is set to become the nation’s first public pro-Bitcoin leader. Having pledged to promote Bitcoin mining, protect self-custody rights, and potentially create a strategic Bitcoin reserve, we could see a significant shift in federal crypto policy.

The crypto market reacted to the news immediately, with Bitcoin reaching a new all-time high price of almost $90,000 . While this is a short-term gain for crypto enthusiasts, what does the historic victory mean for the future? Let’s see a few possibilities in this article.

Future Impacts of Trump’s Presidency on the Crypto Industry 

Donald Trump’s presidency is already shaking up the crypto market before he resumes office. Here are some significant changes we may see after he is sworn into office in January 2025. 

Trump has outlined a series of ambitious changes aimed at making the US a global leader in cryptocurrency. Here are some of the major promises he’s made to the crypto community:

Improved Regulatory Frameworks

Trump has committed to overhauling the current regulatory approach, which he views as overly restrictive and stifling to innovation. A significant part of this plan includes restructuring the SEC, which has been widely criticised for its “regulation by enforcement” approach that has created uncertainty and challenges for crypto businesses. 

Trump has specifically mentioned that, from day one, he intends to replace the current SEC Chair. This signals a fresh start for crypto regulation and potentially fostering a more predictable and supportive environment for the industry.

Making the US a Bitcoin Mining Hub

Trump has stated his vision for the US to be a major player in Bitcoin production. This means supporting Bitcoin mining companies through clearer policies and possibly providing resources to encourage growth in the sector.

Bitcoin Strategic Reserve

Following a proposal by Senator Cynthia Lummis, Trump aims to establish a national Bitcoin reserve, with plans to purchase 200,000 Bitcoins over the next five years. This would mark a historic first for a nation to strategically hold Bitcoin as part of its reserves.

Crypto Presidential Advisory Council

To foster an open dialogue between the government and the crypto industry, Trump has proposed creating a Presidential Advisory Council for crypto. This council would consist of industry leaders and experts to provide guidance on policies that impact the sector.

Support for Self-Custody Rights

Emphasising personal control over digital assets, Trump has pledged to uphold the right to self-custody, ensuring individuals can securely hold their own crypto assets without interference.

Opposition to Central Bank Digital Currency (CBDC)

Trump has taken a clear stance against the creation of a CBDC, which he sees as a potential threat to financial freedom and privacy, pledging instead to support decentralised forms of digital money.

Bitcoin Reaches a New All-Time High After Trump’s Win

On Wednesday, November 6, 2024, Bitcoin initially crossed $75,000 after it became likely that Donald Trump would win on the US election day. The coin later climbed up to almost $90,000 about a week after the Republican Party candidate was confirmed as the winner of the 2024 elections and set to become the 47th president of the United States. 

Before these highs, Bitcoin had initially recorded an all time high (ATH) of $73,000 in March 2024. But after the US elections, the crypto market is doing well. 

Why has Trump’s win significantly impacted the crypto market?

Trump campaigned as the pro-crypto candidate, contrasting his stance with Kamala Harris’s more cautious approach to digital assets. Throughout his campaign, Trump highlighted his plans to foster a crypto-friendly environment, touching on potential regulatory reforms and support for Bitcoin. Furthermore, his alliance with Elon Musk, a major crypto influencer, added credibility to his vision, drawing strong interest from the crypto community.

This “brotherhood” between them has also resulted into the creation of the US Department of Government Efficiency (DOGE), which has a major goal of cutting government waste. DOGE will be co-headed by Twitter CEO Elon Musk and Vivek Ramaswamy. DOGE shares the same name with Dogecoin, causing speculations that the meme coin’s price will get a boost.

Overall, the price shifts we’re seeing reflect the general optimism in the market, as investors anticipate market growth and potential new opportunities under Trump’s administration, set to take effect in 2025.

Final Thoughts

Donald Trump made several promises during his campaign that could significantly impact the crypto market, which explains why investors are feeling optimistic since his election win. Among his key promises were reforms in the SEC, aiming to create a more favourable regulatory environment for crypto, and potential measures to reduce interest rates. 

If Trump delivers on these commitments, we could see friendlier regulations and increased adoption of Bitcoin and other digital assets, creating a more robust market for the broader crypto industry.

Disclaimer: This content is for educational purposes only and not financial advice. Please do your own research (DYOR) or speak to a financial advisor before making any investment decisions.