Donald Trump, by winning the U.S. presidential election, pledged to make significant changes in the governance of the country. Previously cautious about cryptocurrencies, Trump is now adopting a more favorable stance towards the sector as he approaches 2024.
Expectations in the Crypto Industry
In his post-election statements, he announced plans to remove SEC Chairman Gary Gensler and create a Bitcoin reserve. However, achieving these goals does not seem straightforward. Trump will need to navigate both legal and political hurdles to implement these steps.
Corporate Investment and Future Projections
Trump mentioned that he would dismiss SEC Chairman Gary Gensler as soon as he took office. He also indicated plans to end the Biden administration’s anti-crypto stance. Strong legal justifications are necessary for these promises to be fulfilled, and dismantling existing SEC regulations could be complex and time-consuming, leaving uncertainty about how Trump’s commitments will come to fruition.
The crypto sector views Trump’s victory as a significant development. Industry leaders anticipate relaxed regulations and increased institutional investment in this new era. Galaxy Digital Holdings CEO Mike Novogratz described Trump’s win as “a historic day for crypto.” Meanwhile, BITWISE Chief Investment Officer Matt Hougan predicts Bitcoin could reach $100,000 by the end of 2024 and $200,000 in 2025.
Some in the crypto industry believe that under Trump’s administration, regulatory easing could enhance the U.S.'s competitive edge in digital asset technology. Concordium CEO Boris Bohrer-Bilowitzki noted that the U.S. could host more initiatives in this sector.
The crypto market reacted positively to Trump's victory, breaking new records. However, the extent to which his promises will materialize remains uncertain. Regardless, Bitcoin and other cryptocurrencies may enter a growth period thanks to potentially supportive policies from the Trump administration, creating new opportunities for investors.
