- Donald Trump has won the US election, securing a second term as president.
- The news has bolstered confidence among the crypto community, thanks to Trump’s pre-election campaign focussing on Web3 reform.
- In particular, analysts are bullish on a restructuring of the SEC, including the replacement of current Chair Gary Gensler.
- Many believe that a price target of US $100k for BTC by the end of 2024 is a distinct possibility.
As the world reacts to perhaps the most expected unexpected outcome of the US election, the crypto community is celebrating. Within hours of Trump’s victory, Bitcoin surged to a new all-time high, while the market as a whole bounced by more than 10%.
The reason for the industry’s bullishness comes thanks to Trump’s embrace of blockchain technology as part of his 2024 electoral campaign. The Republican candidate promised sweeping reform to the crypto sphere, and analysts believe the new government can finally instill the regulatory clarity so many have been crying out for.
Related: Bitwise CIO Says Crypto Unstoppable, Foresees Post-Election Buying Opportunities
Bitcoin to US $100k Just a Starting Point, Bullish Sentiment Flows
The positive outflow from Trump’s election has been swift and widespread among the crypto community. Many analysts, executives and commentators have weighed in on how the outcome might affect Bitcoin and the Web3 market over the coming months.
CoinDesk’s senior analyst, James Van Straten, argues that BTC could climb to USD $100k (AU $150k) on the back of the Republicans gaining office.
BTC is still below the CPI inflation adjusted price which is [US]$77k, so it is still relatively cheap. Google Search traffic for Bitcoin on a one-year time frame is also near the lows, which shows we are not near any form of euphoria or greed in the market.
James Van Straten, CoinDesk Senior AnalystBitwise Chief Investment Officer, Matt Hougan, echoed these sentiments in a blog post to investors.
We were in a bull market before last night’s election result; the outcome will only accelerate things…There is widespread expectation of a more supportive regulatory environment…that will likely mean more ETFs, more institutional adoption, and more growth…We are entering the Golden Age of Crypto.
Matt Hougan, Bitwise CIOCrypto No Longer Has Its “Hands Tied Behind Its Back”
There are several reasons for crypto lovers to be optimistic about a Trump presidency.
The Republican candidate, alongside Senators, promised that the US would create a Bitcoin Federal Reserve, alongside incentivising local mining operations.
However, perhaps the biggest coup will be regulatory clarity.
At a Bitcoin Nashville Conference earlier this year, Trump vowed that he’d remove the SEC Chair Gary Gensler on “Day One” if necessary. Although he technically can’t actually do that, Gensler will likely depart his role as is standard when US Government changes.
Gensler’s SEC under Democratic Leadership has enacted a “regulation by enforcement” approach, which many believe has stifled Web3 innovation within the US and globally.
But removing the traditionally anti-crypto Gensler and replacing him with a more progressive SEC Chair will likely see positive financial reform come to the Web3 industry.
Crypto has been operating for the past four years with both hands tied behind its back…This hostile environment cast a massive shadow across the industry that precluded mainstream adoption…this has now gone, swept away in a momentous election that will install a pro-crypto Congress and president in Washington.
Matt Hougan, Bitwise CIOCredit: Source link
