By Gloria Methri
As Donald Trump reclaims the Oval Office, a ripple effect is spreading through the cryptocurrency market, leading some to wonder whether his presidency will be a boon for digital assets. As Bitcoin hits record highs and a wave of optimism sweeps through the crypto community, experts are wondering what this policy shift means for the future of digital assets.
A historic surge in cryptocurrency prices
The 2024 US election results were followed by a historic rally in the crypto market. Bitcoin (BTC) has reached a new all-time high of $76,000 – a rise many attribute to Trump’s pro-crypto stance and expectations for regulatory support.
According to Dilip Chenoy, President of Bharat Web3 Associationthis moment marks an important milestone. “As institutional confidence increases, we believe this price increase could pave the way for more balanced regulatory frameworks and mainstream acceptance,” Chenoy noted. He sees Trump’s return as a potential catalyst that could push the digital asset market toward broader stability and adoption.
Shivam Thakral, CEO of BuyUcoinalso attributes the price rise to Trump’s victory, calling it a “remarkable rise.” Thakral explained that the recent market performance, with Bitcoin at $76,000, Ethereum above $2,839 and Solana near $190, reflects investor optimism about a friendlier regulatory environment. According to him, this could open new doors for decentralized finance (DeFi) assets, paving the way for sustainable growth. “The market is gaining momentum,” he added, “and investors are responding positively, suggesting this rise could be a sign of more things to come.”
Institutional interest and market maturity
Trump’s re-election is not only attracting individual investors, it is also attracting the attention of large institutions. Anish Jain, founder of WadzChain, considers the Bitcoin rally to be a “pivotal moment” that highlights the growing confidence of institutional players in decentralized assets.
“This milestone is not only indicative of the resilience of Bitcoin,” noted Jain, “but also highlights the growing integration of cryptocurrencies into traditional finance.” WadzChain’s vision, he added, is to foster a digital economy where blockchain promotes transparency and inclusiveness.
Sustained institutional interest signals a maturing crypto market. Analysts suggest that Trump’s leadership could usher in an era where digital assets are more recognized as a legitimate part of the financial ecosystem, with DeFi solutions bridging traditional and digital economies. Jain expressed optimism that the growing adoption of crypto assets will empower both users and organizations, thereby laying the foundation for financial inclusion and innovation.
Wall Street’s bet on Bitcoin
The institutional changes following Trump’s victory further reinforce the bullish sentiment. Ryan Lee, chief analyst at Bitget Research, explained that sidelined funds are now flooding into the market, driven by a mix of optimism and fear of missing out. Lee noted that the futures market’s current long-to-short ratio suggests that Wall Street is taking long positions, indicating confidence in the market’s upward trajectory. “In the short term,” Lee said, “we will likely see BTC prices skyrocket as more institutional funds enter the space.”
However, Lee also highlights potential challenges. Trump’s policies could trigger inflation, which could keep U.S. interest rates above 3.5% in the medium to long term. Still, he believes that if the Republican-led Congress championed crypto-friendly regulation, these challenges could be offset by a favorable policy environment, ultimately benefiting the industry.
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