Could the increasing support for Trump within the crypto community and his pro-crypto policies lead to a historic bull run if he wins the 2024 election?
The current political climate in the U.S. is charged with uncertainty. Voters are deeply divided, and the economic challenges facing the nation are substantial.
As President Joe Biden and former President Donald Trump prepare for the upcoming 2024 U.S. Presidential election face-off, the stakes are high, not just politically, but economically and technologically.
The U.S. is grappling with persistent inflation, de-dollarization risks, geopolitical tensions, and a polarized political environment. Amid this uncertainty, the role of crypto assets has emerged as a key issue for voters.
According to a recent survey by Grayscale, nearly half of the voters now expect to include crypto in their investment portfolios. This growing interest is particularly pronounced among younger voters, with 62% of Gen Z and Millennials seeing crypto as the future of finance.
Recent developments suggest that crypto tides seem to be shifting towards Trump. What are those reasons, and could his revival herald a long-awaited bull run in the crypto market?
Changing stances and political wars
As the election draws near, both Biden and Trump offer starkly different visions for the country’s future, each with distinct implications for the economy and, by extension, the crypto market.
Former President Donald Trump, once a vocal critic of cryptocurrencies, has made a surprising pivot. Previously describing Bitcoin (BTC) as a “scam” and cryptocurrencies as a “disaster waiting to happen,” Trump has now embraced the digital asset industry.
He recently proclaimed on social media that he is “very positive and open-minded to crypto companies and all things related to this new and burgeoning industry.”
Trump’s new stance is a marked departure from his earlier views and suggests a strategic move to align with the growing pro-crypto sentiment among voters.
In contrast, President Joe Biden’s administration has maintained a more skeptical stance towards crypto. Biden recently vetoed a resolution that had passed through both the House and Senate, which was widely supported by the crypto industry.
The resolution aimed to repeal an SEC decision that would have imposed stricter regulations on financial institutions holding crypto assets.
Biden argued that the resolution would undermine the SEC’s ability to set necessary guardrails for the industry, stressing on the need to protect consumers and investors.
The rise of pro-crypto sentiment and Trump’s influence
As the 2024 U.S. Presidential election approaches, Trump’s backing from crypto billionaires and social media influencers is becoming increasingly apparent.
Tyler and Cameron Winklevoss, well-known figures in the crypto world, have openly declared their support for Donald Trump. Tyler Winklevoss tweeted about donating $1 million in Bitcoin to Trump’s campaign, citing the Biden administration’s “war against crypto” as a key reason.
His brother, Cameron, echoed this sentiment, advocating for Trump’s pro-Bitcoin, pro-crypto, and pro-business stance.
Meanwhile, social media influencers like Wendy O have also voiced their support for Trump. She pointed out the regulatory uncertainty and stressed how crucial this election is for the future of the industry.
Trump has cleverly integrated cryptocurrency into his campaign. He is reportedly in talks to speak at the Bitcoin 2024 convention, the largest BTC event of the year, scheduled for July 25-27 in Nashville, Tennessee.
This event, following the Republican National Convention, could provide Trump with a huge platform to solidify his pro-crypto stance.
Earlier this month, Trump also met with leading Bitcoin miners in the U.S., advocating for all remaining BTC to be mined domestically.
Moreover, during a recent rally, he promised to end Joe Biden’s “war on crypto” and ensure that the future of Bitcoin and crypto would be shaped in America.
Trump’s pro-crypto stance has already resulted in substantial on-chain donations. Before the Winklevoss brothers’ contributions, Trump’s campaign had received roughly $60,000 in on-chain crypto donations.
With the recent influx, total on-chain donations now stand at around $1.75 million. This figure is expected to rise as more contributions made via exchanges are accounted for.
The growing support for Trump within the crypto community is also reflected in prediction markets.
Platforms like Polymarket show Trump leading with 60% odds compared to Biden’s 34%, with bets amounting to around $185 million, indicating a strong belief among bettors that Trump’s pro-crypto policies will resonate with voters.
As the political climate heats up, the crypto market is seeing a surge in a new category: Politifi. This sector, which combines politics and finance, has quickly amassed over $1.25 billion in market cap as of June 27.
The majority of this market cap is dominated by Trump-related meme coins, reflecting the influence of the former president on the crypto community.
The most trending of all Trump-related meme coins is MAGA (TRUMP), which has seen a staggering rise of over 540 times since its inception in September 2023. As of June 29, it is trading at around $7,35.
Another coin gaining ground is MAGA (MAGA), which has increased more than 34 times since its inception in May 2024, currently trading at $0.0002374.
Both of these coins are based on Trump’s famous slogan “Make America Great Again” (MAGA) and are experiencing huge trading volumes and investor interest amid the ongoing political drama.
Amid this, social media is abuzz with speculations and bullish predictions about the impact of Trump’s potential return on the crypto market.
For instance, one user tweeted, “Trump is going to send crypto to new highs. 2025 will be the greatest bull market of all time.”
This sentiment is echoed by another user, who tweeted, “A Trump victory would send the SP500 to 6000 and $BTC to $250k IMO and it’s going to happen.”
The optimism surrounding Trump’s potential victory and its impact on the crypto market is palpable, with many believing it could spark a bull run. But is it possible?
Can Trump’s arrival ignite a crypto bull run?
Amid all this political drama, the question on everyone’s mind is: can Trump ignite a crypto bull run? To answer this, we need to consider several factors, starting with the necessity of regulations.
No matter who wins the election, clear and balanced regulations are crucial for the crypto market’s growth. The lack of regulatory clarity has been a major hurdle, causing uncertainty among investors and hindering innovation.
Both Trump and Biden have different approaches, but the core issue remains: the need for sensible and neutral policies that support growth while protecting consumers.
Politics is often a game of lies, deceit, and changing sides, and Trump is a prime example. He has shifted from being a vocal critic of crypto to its staunch supporter.
While Trump’s newfound pro-crypto stance is attracting attention and support, it is essential to remember that his views could change again based on political convenience.
Under the Biden administration, the SEC has been criticized for its stringent approach, which many believe has stifled innovation.
However, it’s important to note that neither Trump nor Biden can be seen as saints in this context. What truly matters is the implementation of regulations that strike a balance between innovation and protection.
Without such balanced policies, the crypto market may find a more welcoming environment in other countries. Nations like Switzerland and Singapore are already vying for the lead in the crypto race by offering more favorable regulatory frameworks.
Without clear regulations, the U.S. risks losing its edge in the global crypto landscape, regardless of who occupies the White House.
