Cryptocurrency market has witnessed green flags after Republican candidate Donald Trump’s victory in the 2024 U.S. presidential elections against his Democratic opponent Kamla Harris.
The victory of Trump has significantly influenced the crypto industry, particularly Bitcoin. Bitcoin price surged past $100,000 for the first time after the election’s results were declared. This Bitcoin rally added around $1.2 trillion to the crypto market’s value. Trump’s crypto-friendly approach is believed to encourage innovation and acceptance of digital assets.
Additionally, Trump’s proposal to establish a federal Bitcoin reserve highlights his commitment to integrating cryptocurrencies into the U.S. financial system. This initiative aims to position the U.S. as a global leader in the crypto space, potentially attracting more institutional investment.
A landmark move by Trump’s administration was nominating Paul Atkins, a cryptocurrency advocate, as the new chairman of the Securities and Exchange Commission (SEC). Atkins’ appointment is expected to further boost investors’ confidence.
Impact of Trump’s Victory on Various Crypto Segments
Donald Trump, set to be sworn in as the 47th President on January 20, 2025, has shown a pro- crypto stance. From Bitcoin’s rising value to advancement in DeFi, NFTs, and crypto exchanges, his victory has started to bring transformations in the crypto industry. Let’s explore its impact on some key areas.
Impact on Bitcoin
Trump supporting the crypto sector has raised the value of Bitcoin, which has crossed the $100,000 mark. This bullish sentiment, in addition, has been fuelled by Van Eck Ventures, a renowned global investment manager, who recently forecasted that Bitcoin could hit $180,000 in the ongoing market cycle. Such prediction underlines the growing optimism for Bitcoin under the leadership of Donald Trump.
Impact on Non-Fungible Tokens (NFTs)
Donald Trump has shown keen interest in the world of NFTs, which has raised excitement among investors. Even before winning the election, he has launched four batches of NFTs that highlights his commitment to blockchain technology. His proactive involvement suggests that he could play a key role in driving the growth of the crypto industry.
Impact on Decentralised Finance (DeFi)
Decentralised Finance (DeFi), which is often regarded as the backbone of the crypto market, is ready to witness tremendous growth under Trump’s pro-crypto approach. Recently, Trump has introduced his own DeFi project, World Liberty Financial, to modernise the decentralised financing sector. This project reflects his vision to encourage innovation within the cryptocurrency ecosystem.
Impact on Altcoins
After Bitcoin price soared, various altcoins have given more than 100% return to their investors within a month, according to the CMC Altcoin Season Index. One of the biggest altcoins after Ethereum and Solana, Ripple’s XRP jumped around 444%, becoming the third largest cryptocurrency by market capitalisation.
Impact on Meme Coins
Tesla CEO Elon Musk, a prominent figure in the crypto world and the leading supporter of meme coins, has been appointed to co-lead the Department of Government Efficiency (DOGE) by the Trump administration. The development has raised the prices of meme coins like Dogecoin, Shiba Inu, PNUT, Floki Inu, and many more.
Impact on Crypto Exchanges
According to Newhedge data, crypto exchange volumes hit $2.9 trillion in November, a three-year high in November after Trump’s win. Major crypto exchanges, including Crypto.com and Kraken, witnessed remarkable trading levels, breaking records and emphasising the revival of interest and investment in the crypto market.
Impact on Global Crypto Adoption
Donald Trump’s pro-cryptocurrency stance and his commitment to reforming crypto regulations can influence global crypto adoption. Countries with strong geo-political ties with the U.S. might get inclined towards cryptocurrency, promoting crypto-friendly environment in the world. This shift could potentially lead to widespread policy changes, boosting global acceptance and integration of digital currencies.
Roadblocks in Trump’s Crypto Vision
Donald Trump’s support for the crypto world and aim to transform the industry is quite known. But, it doesn’t seem to be an easy journey. He is believed to face many hurdles. A major challenge is to carry out flexibility in the complex crypto regulatory environment as existing financial laws are not designed for digital assets. Aligning monitoring agencies like the U.S. SEC and Commodity Futures Trading Commission (CFTC) to create policies, which ensures consumer protection.
Another major challenge is addressing security concerns inherent in the crypto space. Prevention of crypto fraud, hacking, and money laundering to build public trust. Implementation of strict safety protocols and compliance standards are must to avoid these risks and promote global crypto adoption.
Moreover, Trump also needs to manage environmental impact of crypto mining due to high energy consumption, associated with Bitcoin mining operations, which has raised environmental concerns over the period. Stimulating sustainable practices and supporting the development of energy-efficient technologies are vital to balance industry growth with an eco-friendly approach.
Hence, the outlook of the cryptocurrency market looks positive after Donald Trump returns to the White House. Crypto has been a key element of Trump’s campaign. His victory has undeniably impacted the crypto world with Bitcoin surging past $100,000 and investors’ renewed interest in DeFi, NFTs, and meme coins.
However, the Trump administration needs to work efficiently in collaboration with regulatory bodies and stakeholders to safeguard sustainable and secure cryptocurrency future.
Also Read: Bitcoin Surged 42% in November: What To Expect in December?
