Trump’s Potential Victory and Its Impact on Bitcoin (BTC)

As
the
2024
U.S.
Presidential
election
draws
near,
the
potential
victory
of
Donald
Trump
is
becoming
a
highly
debated
topic,
especially
within
the
cryptocurrency
community.
According
to

CoinShares,
the
odds
of
Trump
winning
stand
at
46%,
reflecting
a
significant
interest
in
his
policies
among
the
digitally
native
and
pro-crypto
demographics.

Trump’s
Pro-Crypto
Policies
and
J.D.
Vance’s
Influence

Trump’s
selection
of
J.D.
Vance
as
his
running
mate
has
further
fueled
speculation
about
the
future
of
cryptocurrency
under
his
potential
administration.
Vance,
a
former
venture
capitalist,
is
known
for
his
strong
pro-crypto
stance.
His
financial
disclosures
from
2022
revealed
holdings
of
between
$100,000
and
$250,000
worth
of
crypto
on





Coinbase.

Vance
has
been
actively
involved
in
proposing
regulatory
changes
to
benefit
the
crypto
industry.
According
to
Politico,
he
has
circulated
a
draft
proposal
to
overhaul
the
regulatory
framework
managed
by
Washington’s
top
two
financial
regulators.
His
public
statements
have
also
criticized
measures
like
Canada’s
attempts
to
freeze
bank
accounts
of
COVID-19
protesters
and
Biden’s
infrastructure
law
that
imposed
tax
reporting
requirements
on
crypto
firms.

Trump’s
Evolving
Relationship
with
Bitcoin

Initially
skeptical
about
Bitcoin
and
other
cryptocurrencies,
Trump’s
stance
has
evolved
significantly.
His
venture
into
crypto-based
NFTs
has
reportedly
generated
millions
of
dollars
for
his
campaign.
Trump
has
also
expressed
support
for
Bitcoin
miners,
describing
them
as
“our
last
line
of
defense
against
a
CBDC”
(Central
Bank
Digital
Currency)
and
advocating
for
Bitcoin
production
to
remain
within
the
United
States.

Moreover,
Trump
has
committed
to
firing
SEC
Chairman
Gary
Gensler
on
his
first
day
in
office
if
elected,
criticizing
Gensler’s
anti-crypto
lawsuits
and
slow
progress
on
crypto
regulation.
This
move
could
potentially
benefit
altcoins
more
than
Bitcoin
but
is
seen
as
a
positive
development
for
the
crypto
market
overall.
Trump
has
also
shown
support
for
stablecoins
to
extend
U.S.
Dollar
dominance
and
has
opposed
the
idea
of
CBDCs.

Economic
Policies
and
Their
Impact
on
Bitcoin

Trump’s
economic
policies,
which
combine
tax
cuts
with
protectionist
measures,
could
have
mixed
implications
for
Bitcoin.
His
administration’s
previous
term
saw
disciplined
management
of
the
money
supply
until
the
COVID-19
pandemic.
However,
his
nationalist
stance
on
tariffs
and
trade
could
lead
to
inflationary
pressures,
affecting
the
geopolitical
stability
and
the
U.S.
dollar’s
status
as
a
reserve
currency.
These
factors
could
indirectly
benefit
Bitcoin
as
a
hedge
against
inflation.

Trump
has
indicated
that
he
would
not
remove
Federal
Reserve
Chair
Jerome
Powell
before
the
end
of
his
term,
suggesting
continued
hawkish
monetary
policy
until
2026.
However,
Trump
may
prefer
to
appoint
a
dovish
Fed
Chair
to
lower
interest
rates,
which
could
positively
impact
digital
assets
and
Bitcoin.

Kamala
Harris’
Crypto
Policies

Vice
President
Kamala
Harris’s
stance
on
cryptocurrencies
remains
unclear,
but
her
presidency
might
offer
a
more
balanced
approach
compared
to
the
Biden
administration.
Some
Democrats
have
already
started
exploring
more
positive
crypto
legislation,
as
evidenced
by
their
support
for
a
bill
to
reconsider
the
SEC’s
approach
to
digital
assets,
although
it
was
vetoed
by
President
Biden.

With
an
estimated
50
million
Americans
engaged
with
cryptocurrencies,
Harris
might
consider
aligning
with
Democrats
advocating
for
favorable
crypto
legislation.
However,
her
past
affiliations
suggest
a
cautious
approach,
potentially
making
her
presidency
less
favorable
to
digital
assets
than
a
Trump
presidency.

In
summary,
Trump’s
potential
victory
could
create
a
mixed
but
potentially
advantageous
landscape
for
Bitcoin
and
the
broader
crypto
market.
His
pro-crypto
stance,
coupled
with
J.D.
Vance’s
influence,
might
foster
a
more
favorable
regulatory
environment,
while
his
economic
policies
could
indirectly
benefit
Bitcoin
as
a
hedge
against
inflation.

Image
source:
Shutterstock