Potential Impact of Trump’s Presidency on Cryptocurrency Moving Forward
News broke on Donald Trump’s election win, and the impact on bitcoin was undeniable. The cryptocurrency skyrocketed to record highs as Trump positioned himself as a pro-crypto candidate during his campaign.
In the wake of his win, stories emerged about Trump’s push for a national bitcoin reserve, growth in the bitcoin mining sector, and the launch of a new crypto venture in September. While there was speculation about a percentage of revenue going to the Trump family, they maintained no liability.
Bitcoin smashed through the US$99,000 mark in recent trading, sparking questions about the sustainability of the rally. Experts like Paul Pincente from Purpose Investments see this upward trend as different from past cycles, attributing it to increased adoption, better infrastructure, and changing global regulatory attitudes.
However, Daniel Strauss of National Bank of Canada Financial Markets remained cautious, warning of bitcoin’s high risk nature and steep value fluctuations. Despite predictions for more favorable crypto regulations, the volatile nature of cryptocurrencies, highlighted by deep market value drops and cybersecurity risks, remains a concern.
Despite early skepticism from Trump about crypto’s impact on the US dollar during his first term, he embraced a pro-crypto stance in his latest presidential bid. This shift raised eyebrows, especially as SEC chair Gary Gensler, known for his conservative approach to cryptocurrency regulation, monitored the industry closely.
One of the ongoing concerns with cryptocurrencies, particularly bitcoin, is their massive energy consumption during mining operations, which poses environmental challenges. As the world watches this unfolding saga, it’s clear that the intersection of politics and crypto is becoming increasingly complex.
