Originally published on: November 07, 2024
The cryptocurrency market experienced a surge in the wake of Donald Trump’s victory in the 2024 United States presidential election, with many anticipating a significant impact on the industry. A recent report by HTX Ventures, as analyzed by Cointelegraph Research, delves into the factors influencing Bitcoin and cryptocurrency’s role in the election while exploring how future policies, market expectations, and crypto companies could be affected in the years to come.
Cryptocurrencies have been gaining popularity in the US year after year, with the 2024 election cycle particularly highlighting the industry’s importance. Several key issues have propelled cryptocurrencies into the limelight during debates and election campaigns.
One such issue is the macroeconomic outlook, which paints a challenging picture. Current US fiscal policies might lead to a growing federal budget deficit and an increase in the federal debt, potentially disrupting financial markets. Bitcoin, priced at $75,898, is considered a valuable hedge against inflation, especially for the working class faced with mounting economic burdens.
Stablecoins have also contributed to the rising popularity of cryptocurrencies. Despite being introduced just a decade ago, stablecoins now rank among the top holders of US Treasury securities, surpassing countries like Germany. This indicates stablecoins’ integral role in the US financial system, providing additional liquidity support.
Interest in cryptocurrencies among voters is on the rise, evident in a national survey that revealed more than half of voters preferred a candidate knowledgeable about crypto. Swing states like Pennsylvania and Wisconsin have shown increased interest in cryptocurrencies since the 2020 election, signaling growing awareness and engagement.
During his election campaign, Trump expressed a keen interest in the digital asset industry, pledging to make the US the “crypto capital of the planet.” He supported Bitcoin mining, emphasized self-custody rights, and criticized the SEC’s stance on crypto. While his proposed crypto policies hold promise, their implementation may face obstacles, potentially impacting the crypto market.
Prediction markets, particularly Polymarket, have thrived in the election’s aftermath, capturing 80% of the wager volume on the presidential race. Decentralized finance (DeFi) also stands to gain traction in the mainstream financial market, with BTCFi emerging as a leading player. The prospect of a clearer regulatory framework and a more favorable environment under a Trump administration could bolster crypto companies’ presence and growth.
In conclusion, the influence of the 2024 US elections on the crypto market is undeniable. While uncertainties loom, promising developments hint at potential opportunities for the industry’s expansion and innovation. Readers are advised to conduct their research and exercise caution when navigating the dynamic landscape of cryptocurrency investments and trading.
