Are Trump and Vance Beneficial for Bitcoin? Market Optimism Persists Despite Trump’s Criticism of it as a ‘Scam’
The recent developments in the political landscape have had a significant impact on the world of cryptocurrencies, particularly bitcoin. Analysts at Bernstein have highlighted what they call the “Trump factor” as a positive catalyst for bitcoin. This assertion comes as former President Donald Trump’s choice of Ohio Senator JD Vance as his running mate has fueled optimism among bitcoin investors. Despite Trump’s past criticisms of bitcoin, his new crypto-friendly stance has garnered support from the crypto community.
According to Bernstein analysts, the crypto market views a potential Trump presidency favorably, with bitcoin’s price showing a positive correlation with the likelihood of Trump returning to office. Since the failed attempt on Trump’s life over the weekend, bitcoin has surged by about 10% to nearly $65,000. This increase in price is attributed to the boost in Trump’s chances of winning the upcoming presidential election, as indicated by various betting markets and polls.
Looking ahead, analysts predict that bitcoin will remain sensitive to the election dynamics. Gautam Chhugani, a lead analyst at Bernstein, has set a bullish price target of $200,000 for bitcoin by the end of 2025. Chhugani also pointed out that the Biden administration’s regulatory stance on crypto and Trump’s pro-bitcoin statements are contributing to the positive sentiment surrounding bitcoin.
Trump’s support for domestic bitcoin mining and his opposition to central bank-issued digital currencies are seen as key reasons for his growing popularity among crypto enthusiasts. Furthermore, the recent appointment of JD Vance, a long-time crypto advocate, as Trump’s vice presidential pick has further solidified Trump’s pro-crypto stance. Vance’s public support for less regulation in the crypto sector has resonated well with the crypto community.
While Trump’s evolving views on cryptocurrencies have drawn support from notable figures in the crypto industry, including the Winklevoss twins, it is essential to note that the crypto market has also seen significant growth under the Biden administration. Since the 2020 election, bitcoin has surged by almost 400%, reaching close to $64,000. Additionally, the approval of spot bitcoin exchange-traded funds under Biden’s regulators has attracted substantial institutional investment into bitcoin.
Despite the apparent preference for a Trump presidency in the crypto market, the Biden administration’s regulatory actions, particularly led by SEC chairman Gary Gensler, have also played a crucial role in shaping the crypto landscape. Gensler’s crackdown on bad actors in the crypto space and the increase in crypto investment fraud schemes highlight the ongoing challenges and opportunities within the crypto industry.
