- Trump being president could be the best outcome for Bitcoin prices and the crypto market in general.
- We explore how a win would impact Bitcoin’s price action.
The Bitcoin [BTC] 2024 conference is just a few hours away and this time there is perhaps more excitement than ever because of one man. Donald Trump, the 2024 presidential candidate who may change the tides and forever influence the future of Bitcoin.
Trump has been vocal about his support for Bitcoin during his campaign. To an extent that he proposed adding BTC as a dollar reserve. An ambitious plan that cements the idea of Bitcoin as digital gold.
But perhaps the biggest question for crypto enthusiasts is how Trump’s presidency (if he wins), will affect Bitcoin prices. Let’s take a look at the potential price implications.
Pro Bitcoin and crypto regulations
Trump described Bitcoin as a scam just three years ago. Fast forward to the present and he has been baptized and turned into one of the biggest BTC evangelists of 2024.
He recently preached self-custody as one of the things he will champion if he gets elected, as well as potentially turning Bitcoin into a reserve currency.
Trump has also selected JD Vance as his running mate. A noteworthy decision because Vance also holds a pro-crypto stance. It is, therefore, likely that Trump’s administration will implement favorable regulation to match their stance on Bitcoin.
Proper regulation will not only provide clear guidelines but also assist in their ambitions for the U.S as a leader in crypto. Such an outcome should, in theory, have a positive impact on Bitcoin’s market sentiment, and demand in the long-term.
Trump’s economic and political policies
Inflation has been one of the biggest challenges for the U.S during President Joe Biden’s administration.
Consequently, the cost of living went up. Part of Trump’s manifesto is to pursue more favorable economic conditions by lowering inflation and bringing down the cost of living.
Economic policy has a major impact on the price of Bitcoin. This has been abundantly clear in the last 3 years as excessive liquidity due to money printing raised inflation.
The situation was also exacerbated by Biden’s pro-war stance. A combination of these factors resulted in an environment that was not conducive for risk-on assets such as Bitcoin.
Trump and his policies have been viewed as pro-business. As was the case during his previous presidency which was characterized by geopolitical stability.
These factors underscore a potentially healthier economic situation for the investor class, hence liquidity may favor the crypto market.
The speculation factor
Speculation is one of the biggest factors that influence Bitcoin’s price performance. Trump’s strong link to Bitcoin and his pro-crypto sentiment have attracted a lot of attention. Including support from venture capital firms such as A16Z and Andreessen Horowitz.
The alignment of these pro-crypto factors underscore Trump’s current status as a force with the power to influence market sentiment. Take, for example, the recent attempt on his life.
The market rallied after the incident and memecoins on him surviving the attempted assassination were made.
Trump’s ratings spiked slightly against Biden in the days after the assassination attempt. Suggesting that the narrative was in his favor. However, Kamala Harris has stepped up to replace Biden on the Democrat ticket.
Her poll ratings have rivalled and in some cases surpassed Trump’s, suggesting that the presidential race may not be a clean swoop for the Republicans.
Judging by Harris’ strong campaign, it is also important to evaluate the potential impact if she wins. In that case, Trump’s pro-crypto narrative may end up favoring the bulls.
However, a win for Trump could be extremely bullish for the crypto market. Many analysts anticipate Bitcoin prices will rally towards $100,000 if Trump wins. Ultimately, we will have to wait for the next three months to see how things will unfold.
