Author: 636Marx
Today, Trump supporters submitted a DeFi agreement to Aave to deploy the Trump family's digital currency project World Liberty Financial (WLF) on the Aave platform. According to the proposal, WLF will provide 20% of the fees generated on the platform and 7% of the total WLF to token holders of the regulatory agreement. Aave will participate in WLF governance and liquidity mining.
As the 2024 US presidential election approaches, all parties are paying close attention to the election. If Trump wins, it may push the digital currency market to unprecedented heights - Bitcoin may reach $100,000 by the end of the year, and it is expected to rise to a higher level soon. Several key factors support this optimistic outlook. Please follow the author to learn more.
Trump’s evolving stance on digital currencies
Trump's changing views on digital currencies are transformative for Bitcoin supporters. Once an outspoken critic, Trump's attitude towards regulation and innovation has shifted, especially during his 2024 campaign. His current platform proposes rolling back federal regulations, specifically "Regulation 2.0" crypto regulation, and replacing SEC Chairman Gary Gensler, who is widely seen as an opponent of the crypto industry. Such regulatory reforms would create a more favorable environment for Bitcoin, sparking increased institutional interest and investor confidence.
If Trump returns to power, his policies could accelerate the growth of the digital currency market. Standard Chartered Bank predicts that the price of Bitcoin will reach $100,000 by the end of 2024 and could climb to $150,000 in early 2025. Such a surge would mark a major leap for Bitcoin from its current trading range of around $60,000.
Catalysts for Bitcoin’s Rally Under Trump
Several factors could contribute to Bitcoin’s massive growth during Trump’s presidency:
1. A regulatory environment that supports digital currencies: Trump’s proposal to repeal restrictive digital currency regulations could remove a major obstacle for institutional investors. A more relaxed regulatory environment could attract large investors, boosting market demand and Bitcoin prices.
2. Macroeconomic factors: The post-election financial environment is expected to be favorable for Bitcoin. ETF institutions said that U.S. Treasury yields may re-steepen, and Bitcoin will benefit from its increased attractiveness compared with traditional investments such as bonds. People are also optimistic about the funds flowing into Bitcoin ETFs, which usually thrive in such circumstances.
3. Political support for digital assets: The Trump administration is likely to continue to mainstream Bitcoin and other digital assets, as evidenced by the crypto-friendly policies he has proposed during his 2024 campaign. His remarks include support for federal Bitcoin holdings, echoing the practices of companies like MicroStrategy that have large Bitcoin reserves.
4. Market sentiment: Bitcoin prices often fluctuate with market sentiment, and market sentiment tends to surge when major political figures support digital currencies. Trump's positioning as the "crypto president" could spark market optimism and attract more retail and institutional investors.
The role of institutional investors
In recent years, companies such as MicroStrategy, BlackRock and Grayscale have significantly increased their Bitcoin holdings, and a more favorable U.S. regulatory framework could encourage more companies to follow suit. If Trump's policies reduce regulatory burdens, large companies may allocate more assets to Bitcoin, pushing up demand and prices.
In addition, a growing number of Bitcoin ETFs, such as BlackRock’s, offer institutional investors a way to enter the market without having to directly own the asset. Trump’s victory could increase inflows into these ETFs, further boosting Bitcoin prices.
The author's view: a potential watershed moment
Standard Chartered Bank predicts that the price of Bitcoin could reach $200,000 by the end of 2025, regardless of who is president. This bullish outlook stems from the assumption that as Bitcoin becomes further integrated into the global financial system, its price will continue to rise as demand exceeds its limited supply. Trump's successful campaign is one of the triggers for Bitcoin to break through six figures.
Trump's post-election policies may create a more favorable digital currency environment, leading to increased institutional investment, increased market optimism, and improved regulatory transparency. However, Bitcoin supporters should always remember that Bitcoin's current behavior is contrary to Satoshi Nakamoto's invention of a non-inflationary currency. As an unconstrained, highly volatile financial product, it will depreciate very quickly during times of macroeconomic uncertainty.
