According to Bernstein analysts, given the better chances for Republicans and the party’s standard bearer’s growing embrace of a pro-crypto stance, cryptocurrency might become the main “Trump Trade” in this election cycle.
Republicans view adopting a positive position toward the cryptocurrency sector as a means of gaining support from super PACs that fund pro-crypto politicians and winning over voters.
Following Donald Trump’s victory in the 2016 presidential election, there was a simultaneous increase in US stocks, Treasury yields, and the value of the dollar, which led to the creation of the original “Trump Trade.” According to the research, a Trump victory this time would result in a cryptocurrency rise supported by institutional adoption and a better regulatory environment.
In addition to being a vote bank, the experts stated that the Republican side saw cryptocurrencies as a significant source of revenue. Blockchain technology’s “use-case” narrative may alter if election sentiment becomes more Republican and cryptocurrency becomes the main “Trump trade.”
Trump expressed his support for cryptocurrencies during a meeting at Mar-a-Lago earlier this month with executives of numerous Bitcoin mining firms. If he were to run for president again, he declared, he would support the cryptocurrency mining sector.
Subsequently, Trump declared on his Truth Social account that he wants the last of the Bitcoin to be “MADE IN THE USA!!!”
According to a TD Cowen analysis, even with his pro-crypto messaging, Trump might still turn around and become a crypto skeptic if elected.
According to Cowen’s prediction, what Trump says about cryptocurrencies before the first presidential debate in 2024 will be a sign of what regulations his administration would take.
The report says if [Trump] signals anything short of full support, it might fuel fears that, should he be re-elected, he will adopt the same skeptical stance as in his first term.
Additionally, the source mentioned that President Joe Biden might change his views on cryptocurrencies at Thursday’s discussion.
During the Biden administration, proponents of cryptocurrency have criticized the US Securities and Exchange Commission for its vigorous enforcement of laws targeting cryptocurrency trading sites that it claims are dealing in unregistered securities. However, since the SEC approved exchange-traded funds for ether and bitcoin earlier this year, many analysts believe that the agency’s position is softening.
Because of the institutional acceptance of Bitcoin ETFs, the largest cryptocurrency in the world has increased in value by almost 37% this year. Despite its ETFs not yet being formally available on the market, Ether has increased by about 40%.
The Cowen study stated, “We would urge caution on reacting to either candidate on crypto.” “Words may count, but we think it would be erroneous to expect either candidate to deliver in the end.”
