U.S. Election 2024: Trump Victory Could Boost Bitcoin and Crypto Market

Table of Contents

• TLDR
• Looser Regulations and Spot ETF Approval
• Crypto Community’s Election Predictions

As the 2024 U.S. presidential election draws closer, the cryptocurrency community is closely watching the potential impact of the race’s outcome on the digital asset market.

Recent analysis by British banking giant Standard Chartered suggests that a victory for former President Donald Trump could prove beneficial for Bitcoin and the broader crypto landscape.

TLDR

• Standard Chartered analysts suggest that a Donald Trump victory in the 2024 U.S. presidential election could benefit Bitcoin.
• A second Trump administration is expected to be more supportive of cryptocurrencies through looser regulations and the approval of spot ETFs.
• Investors may seek alternative assets like Bitcoin due to the risk of U.S. fiscal dominance and the monetization of government debt.
• Some crypto experts predict a “landslide” victory for Trump, citing perceived policy failures by the current administration.
• While Bitcoin is considered apolitical, election outcomes can still influence market conditions and regulatory changes in the crypto landscape.

During his previous term, Trump was known for his critical stance on cryptocurrencies, famously dismissing Bitcoin as a “scam” in 2021. However, in recent months, the former president has softened his tone, expressing interest in the asset class and even issuing his own non-fungible tokens (NFTs).

This apparent shift in Trump’s perspective has caught the attention of crypto analysts, who believe that a second Trump administration could usher in a more supportive regulatory environment for digital assets.

Looser Regulations and Spot ETF Approval

Standard Chartered’s digital assets researcher, Geoffrey Kendrick, notes that a Trump victory could lead to looser regulations and the approval of long-awaited spot Bitcoin exchange-traded funds (ETFs) in the U.S. This development would likely boost investor confidence and drive significant capital inflows into the crypto market.

In contrast, the Biden administration has taken a relatively tough stance on digital assets, with regulatory uncertainty and delays in ETF approvals weighing on the market.

Beyond the potential for a more crypto-friendly regulatory landscape, Standard Chartered also suggests that a Trump presidency could accelerate the trend of de-dollarization and declining confidence in the U.S. Treasury market.

In such a scenario, investors may increasingly turn to alternative assets like Bitcoin as a hedge against U.S. fiscal dominance and the monetization of government debt.

Kendrick points out that the Bitcoin price has a positive correlation with several potential developments in the U.S. Treasury curve, further supporting the notion that the cryptocurrency could benefit from a Trump victory.

Crypto Community’s Election Predictions

Within the crypto community, some experts are predicting a “landslide” victory for Trump, citing perceived policy failures by the current administration.

Alex Chizhik, COO of the Chamber of Digital Commerce, attributes this sentiment to issues such as immigration, open borders, high inflation, and a general feeling of unsafety in cities post-COVID.

While Bitcoin is often considered apolitical, with its monetary policy encoded in its software, the election outcome can still influence market conditions and regulatory changes in areas like stablecoins and decentralized finance (DeFi).

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