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Author: Benjamin Taubman, Bloomberg; Compilation: Baishui, Bitchain Vision
According to Bernstein’s analysis, as the Republican outlook improves and the party’s flag bearer increasingly accepts views of supporting cryptocurrencies,Cryptocurrencies could become the main beneficiary of the “Trump Market” in the current election cycle.
Gautam Chhugani and Mahika Sapra wrote in a report on Monday,Republicans see a favorable stance on the cryptocurrency industry as a way to win voters and get campaign funds from the super PAC that supports cryptocurrency politicians.
The initial “Trump quote” comes after Donald Trump won the 2016 presidential election, with U.S. stocks, Treasury yields and the dollar soaring at the same time.The report stated thatTrump’s victory will lead to a rebound in cryptocurrency, which will be driven by institutional adoption and improved regulatory environment.
The analyst wrote:“The Republican side not only believes that cryptocurrency is a voting bank, but also a meaningful source of funding.”“If election sentiment turns to Republicans, cryptocurrencies will eventually become the main beneficiary of the ‘Trump quota’, and the hope of a favorable regulatory regime will change the ‘use case’ narrative around blockchain.”
Earlier this month, Trump met with leaders of several bitcoin mining companies at Mar-a-Lago and expressed his support for cryptocurrencies.He said he would become an advocate for the cryptocurrency mining industry if he was president again.
Trump later posted a message on his Truth Social account saying he hoped all the remaining bitcoins would be “Made in the United States!!!”
According to a report by TD Cowen,Despite Trump’s signal to support cryptocurrency, if he is elected, he may still change his stance and become a cryptocurrency skeptic again.
Cowen’s report notes that Trump’s comments on cryptocurrencies during the first presidential debate in the 2024 election will serve as a weather vane for possible regulatory actions his administration will take.
“If (Trump) makes any suggestions other than full support, because it could exacerbate anxiety about resuming skepticism in his first term if he is re-elected.”
The report also states thatPresident Joe Biden may use Thursday’s debate to reposition his stance on cryptocurrency.
During the Biden administration, the SEC was despised by cryptocurrency advocates for cracking down on cryptocurrency trading platforms that accused them of trading unregistered securities.Nevertheless, many observers believe that the SEC’s position is softening since the approval of Bitcoin and Ethereum exchange-traded funds earlier this year.
Bitcoin ETFs have stimulated institutional adoption of the world’s largest cryptocurrency and have pushed it up nearly 37% this year.Although Ether’s ETF has not yet been officially listed, its price has risen by nearly 40%.
“We urge any candidate in cryptocurrency to be cautious,” Cowan’s report said. “Voice may be important, but ultimately we think it’s wrong to assume that any candidate will deliver on its promise.”
