After Donald Trump’s victory in the U.S. presidential election on November 6, analysts and market experts weighed in on how this could impact the crypto market in the near future.
It’s expected that Trump’s administration might try to reset and rethink crypto regulation policies. This would particularly involve the stance of the U.S. Securities and Exchange Commission (SEC), which, under President Joe Biden, had been cracking down hard on crypto. The SEC has been giving the crypto industry a tough time, with a slew of lawsuits and enforcement actions against exchanges and brokers for alleged non-compliance with securities laws.
According to the U.S. brokerage firm Bernstein, quoted by Coindesk, we could see clearer rules around classifying crypto assets and faster progress on legislation regarding stablecoins and the crypto market structure as a whole. Bernstein even predicts that Trump’s administration might push to create a national Bitcoin reserve, something he hinted at in his campaign promises, and ramp up support for U.S.-based crypto mining.
These predictions align with what Jeffrey Kendrick, head of Forex and digital assets research at Standard Chartered, shared with DLNews. Kendrick highlighted Trump’s various pro-crypto promises, like firing SEC Chair Gary Gensler, setting up a national Bitcoin reserve, and making the U.S. the “crypto capital of the world” and a “Bitcoin superpower”—moves that could help fuel a crypto market boom.
In recent years, the SEC has sued even some of the biggest players in the U.S. crypto industry, including Coinbase, Kraken, and Cumberland. SEC Chair Gary Gensler is famously hardline on crypto, openly calling the industry rife with “fraudsters and scammers.” Even when the SEC finally approved the first Bitcoin ETFs in the U.S. in a decade, Gensler reiterated his negative stance on the crypto market. Back in July, Trump spoke at the Bitcoin 2024 conference in Nashville to over 20,000 attendees, where he boldly vowed that firing Gensler would be his first order of business if elected.
Standard Chartered also believes Bitcoin could hit $125,000 by the end of the year and $200,000 by the end of 2025, previously predicting this level if Trump won the election.
Trump has declared he wants to turn the U.S. into a “Bitcoin superpower.”
In the short term, analysts say the Federal Reserve’s decisions and the overall macroeconomic climate will still play a significant role in Bitcoin’s and the broader crypto market’s movements.
BitRiver financial analyst Vladislav Antonov noted that on November 7, the U.S. Federal Reserve would announce its decision on interest rates. The market has already priced in a potential rate cut, but the real focus will be on Fed Chair Jerome Powell’s comments.
Historically, Bitcoin has rallied after U.S. elections since 2012, so what’s in store this time?
“A move toward $100,000 over the next year seems realistic regardless of the election outcome. The main growth drivers will be things like the halving, lower Fed rates, and increased institutional presence in the market—not so much the political climate,” Antonov added.
The Fed’s interest rate is a monetary policy tool that impacts financial markets. When money becomes cheaper (with lower rates), investors are more willing to take risks, investing in stocks, commodities, and other assets, including crypto.
“It’s likely they’ll cut rates, so it won’t be groundbreaking news for the crypto market, but it’ll add some optimism. Bitcoin could approach $80,000 in November, and by the end of December, it might test $100,000,” commented ENCRY Foundation co-founder Roman Nekrasov on the Fed’s potential impact on crypto.
Nekrasov also mentioned that the U.S. election results have given crypto a solid boost, potentially sparking a new bull cycle. His outlook for the next six months is “very optimistic.” With factors like the halving, slowing inflation, and Trump’s pro-crypto stance, investors are seeing a green light for capital to flow into crypto, making it an ideal setup for growth.
