Former President Donald Trump recently expressed strong support for Bitcoin and cryptocurrencies, notably deviating from his previously skeptical position. This major pivot, featured prominently in a recent video circulating among crypto enthusiasts and investors, has fueled speculation about the potential implications for Bitcoin and other digital currencies as the US elections approach in November.
How Trump could increase the Bitcoin price
Trump’s comments were discussed by analyst MacroScope on video of Trump‘s strident and perhaps stunning pro-crypto comments.’ MacroScope suggested that the implications of Trump’s renewed support could be profound, especially as a positive shift in policy from Washington DC regarding cryptocurrencies has not been factored into current market prices.
MacroScope further advised: “In terms of potential price impact on BTC, this should be watched very closely in the coming months.” The statement reflects a broader sentiment within the financial community that political endorsements can lead to market moves, especially when they signal a shift in regulatory approach. The analyst drew parallels to the market’s underestimation of the impact of spot Bitcoin ETFs, indicating that a similar scenario could unfold if Trump’s supportive comments translate into formal policy changes.
By now you’ve probably seen the video of Trump’s strident and perhaps stunning pro-crypto comments.
As for the potential price impact on BTC, this will need to be watched very closely in the coming months. It should go without saying that constructive policy change in DC is not… https://t.co/KL0RNqawZg
— MacroScope (@MacroScope17) May 9, 2024
Meanwhile, the credibility of Trump’s promises is a crucial factor in assessing the possible outcomes of his pro-crypto statements. Although Trump is known for his ambitious promises to gain support, MacroScope noted: “Yes, he will promise anything in front of a crowd to get applause. But we also know from various insider accounts that once he makes a high-profile promise, he is well aware of the attention and approval it received, and he feels obliged to at least appear to be following through on this policy. complies.”
This pattern of behavior suggests that Trump may continue to defend pro-Bitcoin and crypto policies, at least in appearance, to maintain the favor he has gained from these statements. Furthermore, the political discourse surrounding cryptocurrencies is intertwined with speculation about future leadership at the Federal Reserve. Former Fed Governor Kevin Warsh, who is seen as a potential successor to Jerome Powell, has previously provided nuanced insight into Bitcoin’s value, especially in light of a weakening dollar.
In a 2021 statement, Warsh noted, “It makes sense to me,” referring to Bitcoin’s resilience in times of dollar depreciation. Warsh’s possible appointment could usher in a more favorable regulatory environment for cryptocurrencies, in line with Trump’s pro-crypto rhetoric.
Analysis of Trump’s BTC stance: Julian Fahrer’s insights
Julian Fahrer, co-founder and CEO of Apollo, also recently added a nuance analysis of Donald Trump’s relationship with Bitcoin and crypto, ranging from his presidency to his post-presidential activities. Fahrer’s perspective is crucial in parsing Trump’s public statements against his administrative actions.
During his presidency, Trump openly criticized Bitcoin and cryptocurrencies, particularly after Meta’s attempt to launch the Libra stablecoin in 2019. Trump famously stated, “I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile. and based on thin air. Unregulated crypto assets can facilitate unlawful behavior, including drug trafficking and other illegal activities.”
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Despite these comments, Trump’s appointments suggest a more complex position on crypto. He appointed Hester “Crypto Mom” Pierce to the SEC, known for her dissent in favor of Bitcoin and crypto, and Steve Mnuchin to Secretary of the Treasury, who viewed cryptocurrencies as a threat to national security.
This dichotomy shows that the Trump administration maintained a somewhat ambiguous position on crypto regulation, marked by tightened KYC/AML rules by the Financial Action Task Force, in addition to the approval of crypto futures products by the Commodity Futures Trading Commission.
After his presidency, Trump’s attitude seems to have changed considerably. His venture into Trump Digital Trading Cards and the revelation that he will own $2.8 million in ETH by 2023 signal a renewed embrace of digital assets. This change can be attributed to strategic shifts or financial incentives.
Furthermore, Trump’s recent interactions, including bringing pro-Bitcoin Vivek Ramaswamy into his circle and positive comments on Fox about Bitcoin, indicate a possible shift toward a more crypto-friendly stance should he secure a second term. Fahrer aptly notes: “The bigger the enemy of Bitcoin and crypto the Democrats seem to be, the more Trump seems to embrace it.”
This analysis underlines the fluidity between Trump’s rhetoric and his policy actions regarding Bitcoin and cryptocurrencies, with Fahrer concluding that Trump’s evolving stance could lead to a ‘full on Degen Don’ as the November elections approach.
Particularly investment giant VanEck predicted at the start of the year that a Trump victory will push the Bitcoin price to a new all-time high on November 9, potentially reaching $100,000 by December.
At the time of writing, BTC was trading at $63,024.
Featured image from BlockTrends, chart from TradingView.com