Originally published on: November 08, 2024
Since Donald Trump’s victory in the United States presidential election, there has been a significant surge in interest in cryptocurrency, specifically Bitcoin, which has hit all-time highs. This surge comes as his campaign promised to support the crypto industry, signaling renewed interest among retail investors and a potential influx of new buyers into the crypto market.
According to Ryan Chow, the co-founder and CEO of the Bitcoin staking platform Solv Protocol, Trump’s victory is seen as a major catalyst for launching the next bull market in Bitcoin. Chow expressed optimism about the surge in retail investors, highlighting their role in previous Bitcoin bull runs and their potential impact on the current market.
The recent decline in retail trading at exchanges like Coinbase has been attributed to “softer market conditions,” with Bitcoin search volume on Google hitting a yearly low in October. Despite this, the spike in Bitcoin Google searches following Trump’s victory indicates a shift in mindset among retail traders, suggesting a potential uptick in retail interest in the cryptocurrency.
Crypto-macro analyst Noelle Acheson noted that retail investors are often late adopters motivated by price-related headlines and social interest. With their absence in the current market cycle, Acheson suggests that we may be in the early days of the crypto cycle, with the potential for peak hype when retail investors start “piling in.”
Bitcoin educator Chris Dunn believes that Trump’s victory and the resulting surge in Bitcoin prices will attract retail investors back to the market. He sees the breakout above $75,000 as a key milestone that will reignite retail interest in cryptocurrencies.
The collapse of the crypto exchange FTX and the imprisonment of its founder, Sam Bankman-Fried, exposed serious flaws in the industry and eroded public confidence in the sector. However, Trump’s victory and Bitcoin’s upward trend since November 2022 may help restore faith among retail investors and alleviate regulatory concerns in the US crypto industry.
Overall, Trump’s victory has created an optimistic outlook for the future of crypto in the US, with potential regulatory shifts and increased retail interest driving the Bitcoin surge to new all-time highs. This may be the catalyst that retail investors need to overcome past setbacks and re-enter the crypto market with renewed enthusiasm.
