With Donald Trump winning the US presidential election, multiple impacts can be expected on the cryptocurrency market, including Bitcoin and other altcoins:
Trust and investment:
Trump may boost confidence in the U.S. economy, which could attract more investors to digital assets as a hedge against inflation or as a new investment. Given his support for cryptocurrencies, this could boost their wider acceptance.
organization:
If Trump plans to appoint pro-crypto people to regulatory positions like the Securities and Exchange Commission (SEC), it could ease regulatory restrictions on cryptocurrencies, which could boost their prices.
Economic policies:
Trump's fiscal policies, such as tax cuts or reduced government intervention, could lead to an increase in financial liquidity, which could lead investors to look for new investment opportunities in cryptocurrencies in search of high returns.
US Dollar:
If politicians expect the US dollar to weaken due to some policy, investors may view Bitcoin as a store of value, increasing its demand.
Market expectations:
Based on Trump's tweets where he expressed his support for Bitcoin, there may be an expectation that the price of Bitcoin will continue to rise, especially if there is an expectation that the new policies will be favorable to cryptocurrencies.
Impact of political victory:
In many cases, a political victory brings with it a degree of stability or rapid change in policies, which can impact the prices of financial assets in general, including cryptocurrencies.
