Bitcoin Experts Optimistic About Trump/Vance Ticket, Intend to Depreciate Dollar
Bitcoin and cryptocurrency markets saw a surge in prices this week, coinciding with a notable increase in former President Donald Trump’s chances of reelection after an assassination attempt on June 13. The optimism among digital asset experts further intensified following Trump’s selection of pro-crypto Senator J.D. Vance (R-Ohio) as his running mate for the vice-presidential position.
“The alignment with Trump and Vance signals a significant shift towards a more crypto-friendly regulatory environment. Their supportive stance towards business resonates well within the crypto and technology sectors,” noted Matthew Sigel, who heads digital assets research at VanEck. VanEck, having launched its spot bitcoin ETF in January, is actively pursuing approval from the Securities and Exchange Commission for a spot ether ETF. Sigel highlighted the potential for a favorable landscape for crypto entrepreneurs and investors with Trump’s deregulation history and Vance’s tech expertise.
Vance, aged 39, currently serves as a Senator for Ohio, having pursued his education at Ohio State University and Yale Law School subsequent to his service as a Marine combat correspondent from 2003 to 2007. Notably, Vance crossed paths with Silicon Valley figure Peter Thiel during his time at Yale and later joined Thiel’s venture capital firm, Mithril Capital. His prominence surged with the publication of his memoir, “Hillbilly Elegy,” in 2016, shedding light on his upbringing in Ohio.
In a show of support, Thiel contributed $15 million to Vance’s Senate campaign and invested in Vance’s venture capital firm, Narya. Other tech heavyweights like Marc Andreessen, Ben Horowitz of a16z, Palantir co-founder Joe Lonsdale, venture capitalist Doug Leone, investor David Sacks, and the Winklevoss twins have also voiced their support for the Trump/Vance duo. Tesla CEO Elon Musk recently endorsed Trump and pledged significant monthly donations to a pro-Trump super PAC.
Despite his previous opposition to Trump in 2016, Vance has maintained a consistent pro-crypto stance. His ownership of bitcoin valued between $100,001 and $250,000 through Coinbase and legislative efforts supporting cryptocurrency innovation underscore his commitment. Vance’s proposed legislation to revamp digital asset regulation, reported by Politico, has drawn attention for its industry-friendly approach compared to existing bills.
Vance’s advocacy for a weaker dollar and recognition of blockchain’s potential, coupled with his questioning of the USD’s reserve status, has garnered significant interest. This, along with potential policy shifts recognizing bitcoin as a legitimate asset and supporting crypto-friendly banking reforms, could pave the way for transformative changes in the market.
While some question the authenticity of Silicon Valley’s backing for the Trump/Vance ticket, billionaire entrepreneur Mark Cuban believes it could be driven by a strategic move towards crypto. Cuban highlighted the potential impact of geopolitical uncertainties and the dollar’s declining reserve currency status on bitcoin’s trajectory towards becoming a global currency.
In the market, Bitcoin maintained levels above $64,500, reaching a high of $66,105 earlier in the week. Ethereum also saw an uptick, trading around $3,440 post-events related to Trump and Vance. Cryptocurrency stocks experienced fluctuations after an initial rally, with Coinbase showing a 14.3% increase for the week. Bitcoin mining stocks like CleanSpark, Marathon Digital, and Hut8 witnessed both gains and retractions during the week, reflecting the market’s volatility and responsiveness to political developments.
