Cryptocurrency has developed rapidly in recent years, but obviously, different governments have completely different attitudes towards this market.
For example, the Biden administration is relatively conservative and has a strong crackdown on platforms like 'Binance'. However, Trump, who has just been re-elected as president of the United States this month, has always been a firm supporter of cryptocurrency.
Therefore, during this US election, people in the 'crypto circle' have always hoped for Trump's election. The recent surge of Bitcoin from over $60,000 to nearly $100,000 is also attributed to Trump's victory.
So, why has Trump always firmly supported cryptocurrency?
This involves considerations of a series of factors such as the capital power behind Trump and the capital strategy after taking office.
'Crypto circle' tycoons invest heavily to support Trump.
US elections have always been a money-burning game, with both sides spending about $15 billion in this year's election.
So, whoever can raise more funds means more chances of winning. The wealthy 'crypto circle' tycoons are undoubtedly the key players to focus on.
Due to the Biden administration's crackdown on cryptocurrencies, the 'crypto circle' has no good feelings towards the Democratic Party, thus generally supporting the more open Trump.
In addition, American tech giants supporting Trump, including Musk, also hold large amounts of Bitcoin.
Therefore, from the perspective of winning over and rewarding financial backers, Trump will naturally adopt an open and friendly attitude towards cryptocurrency.
Maintain US financial hegemony.
Trump also announced that the US government will continue to purchase Bitcoin for the next five years, establishing corresponding strategic reserves, and promised not to sell. He also expressed that he does not want excessive regulation to undermine the innovation of blockchain technology.
In this, there should be his deep vision for the future economic and financial overall strategy.
In Trump's view, cryptocurrency should be an important weapon for the US to continue to maintain global financial hegemony, aligning with his 'MAGA strategy' (Make America Great Again).
Specifically, the US is the birthplace of the underlying 'blockchain' technology for cryptocurrencies and possesses the largest scale of cryptocurrency reserves in the world, fully capable of leading a new round of global financial capital competition through cryptocurrency.
Anti-inflation and asset preservation.
Moreover, from the perspective of alleviating inflation and promoting asset preservation, Trump also needs to develop cryptocurrencies.
Trump has clearly stated that he intends to launch a new round of trade wars, imposing high tariffs on many trading partners, including China.
Regardless of the specific amount of tariffs imposed, this move will inevitably lead to increased inflation and asset preservation pressure within the US.
Thus, Trump needs to build a large asset class and capital pool to alleviate the inflationary pressure brought by the trade war and continue to maintain the value appreciation of American assets.
The top-level design of this framework is: the US government increases reserves, relaxes regulations, the market is highly free and open, encouraging global participation to enhance liquidity and increase value.
After Trump took office, the White House even established a position specifically for cryptocurrency policy for the first time. Trump's entire cabinet team also strongly supports cryptocurrency, believing in the future of digital assets.
The strong support from the Trump administration will inevitably significantly boost global investment enthusiasm for cryptocurrencies, and given the limited supply of cryptocurrencies, the price trend in the medium to long term is still worth looking forward to.
