Some Sunday morning thoughts.
My theory is:
Trump has already gained the initiative in securing voters from the crypto world and will continue with it. Besides accepting campaign donations in cryptocurrencies, openly supporting the crypto industry, and promising to release Ross Ulbricht at the start of his term, he will likely announce significant tax benefits for users.
Now, according to data, 14.4% of American adults own or use cryptocurrencies. However, the percentage of potential voters who are cryptocurrency users increases to 22%. This is a considerable percentage, but let’s not forget that a large part of this number would already vote for Trump before these declarations, and another large part wouldn’t vote for Trump even with this new approach. However, the Democrats will sooner or later realise that they lost this battle to gain voters from this sector, and out of pride, they might decide, instead of trying to win votes from the crypto community, to do the opposite and continue attack the crypto ecosystem even harder. Let’s not forget that U.S government holds approximately $15 billion in cryptocurrency. Which they will sell sooner or later. First, to rise money and finance their electoral campaign. Second, to try to drive prices down and have more arguments to attack the sector. Third, to prevent leaving those assets to the next president, if there is one.
Therefore, I expect Trump to continue adopting a pro-crypto stance in the coming months, and Biden too in the next few weeks, but eventually Biden should do the opposite and become even more aggressive. This would fit with a scenario where prices keep rising for a few more weeks but then see a significant correction before the Elections (probably from July-August to November). Afterwards, it will depend on who is elected. If Trump is elected, 2025 should be a very good year for the crypto market.