Trump won: what will happen to the crypto market?

This article examines how the crypto industry will evolve after Donald Trump takes office, especially given his campaign promises.

From skeptic to investor: how Trump became a supporter of cryptocurrencies

The history of Donald Trump's attitude toward cryptocurrency is relatively polar: from rejection to active supporter. In 2019, Trump stated that he was not a fan of Bitcoin and other cryptocurrencies, considering them highly volatile and based on "air." He also expressed concern about the use of digital assets in illegal activities.

However, as early as 2022, Trump issued a series of NFTs with his image, signaling his growing interest in digital assets. Trump appeared in various pictures on these NFTs, such as a hunter, a golfer, and an astronaut. Each card cost $99, and the project brought in about $7.15 million. In August 2024, a new series called "America First" was released, featuring physical cards with pieces of Trump's suit.

During the 2024 election campaign, Donald Trump announced the launch of World Liberty Financial, a cryptocurrency platform that provides blockchain-based financial services, including lending and investments, to make banking services more accessible to citizens.

Also, during the 2024 election campaign, Trump began accepting donations in various cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Shiba Inu, showing support for digital assets and attracting crypto-enthusiasts to his campaign.

According to financial disclosures, Donald Trump's cryptocurrency assets were valued between $1 million and $5 million, mainly in Ethereum. These funds are likely related to income from the sale of NFT collections. Specifically, analysts tracked down a wallet address that holds about $2 million in Ethereum and about $12k in USDC. The rest of the assets were memcoins sent by the creators of these tokens to Trump's public wallet to increase the crypto community's interest in them.

However, as of September 2024, Donald Trump's cryptocurrency holdings have increased significantly, exceeding $20 million. This increase is due to several factors:

• Airdrop of TROG tokens: The TROG development team gave Trump half of the tokens, adding about $12 million to his assets.
• TRUMP token (MAGA) value growth: The TRUMP token, also known as MAGA, rose significantly, increasing the value of Trump's assets to $7.9 million.
• Ethereum (ETH) value increase: Trump owns about $1.8 million worth of Ethereum, contributing to the overall growth of his crypto portfolio.

Thus, Donald Trump's current cryptocurrency asset structure looks something like this:

• TROG: about $12 million;
• TRUMP (MAGA): about $7.9 million;
• Ethereum (ETH): about $1.8 million;
• Wrapped Ethereum (WETH): about $1.43 million;
• MVP: about $492k;
• CONAN: about $212k.

As we can see, Trump has evolved from a critic of cryptocurrencies to a strong supporter of them, integrating digital assets into his political and business strategy.

Freedom and innovation: how Trump intends to transform the crypto market in the US

Trump's commitment to cryptocurrencies was reflected during the 2024 election campaign. As part of it, Donald Trump presented several initiatives to support and develop the cryptocurrency industry in the U.S. The main provisions of his program include:

1. Turning the U.S. into a global crypto capital: Trump declared his intention to make the United States the "crypto capital of the planet," creating favorable conditions for developing cryptocurrency technologies and businesses.
2. Creating a national Bitcoin reserve: He proposed to form a strategic Bitcoin reserve using the 207,189 BTC already held by the U.S. government worth about $15.4 billion. Trump believes this will help strengthen the economy and reduce the national debt.
3. Reducing tax pressure on crypto investors: There are plans to reduce the tax burden on cryptocurrency market participants, which should encourage investment and development of the industry.
4. Allowing the use of Bitcoin as a means of payment: Trump expressed his willingness to legalize the use of Bitcoin to pay for goods and services in the United States. So far, this measure has only been implemented in El Salvador and the Central African Republic (CAR). The U.S. has a good chance of becoming the third.
5. Support for the mining industry: He pledged to support miners, noting their role in stabilizing the power grid and developing the economy.
6. Regulatory staffing changes: Trump has announced his intention to replace Securities and Exchange Commission (SEC) Chairman Gary Gensler with an executive more loyal to the crypto industry, which should help soften regulatory policy. Alternatively, Elon Musk, known for his loyalty to cryptocurrencies, could be brought in for a government job.
7. Opposition to the introduction of the digital dollar (CBDC): Trump opposed the launch of a central bank digital currency, believing it could lead to excessive government control over citizens' financial transactions.

All these initiatives reflect Donald Trump's desire to create a favorable environment for developing cryptocurrencies in the United States, reduce regulatory barriers, and stimulate innovation in the financial sector. It remains to wait for their implementation.

Bitcoin on its way to $200,000: what Trump's presidency promises

The election of Donald Trump as U.S. President has already led to a significant rise in cryptocurrency prices, strengthening shares of related companies, and increasing optimism among market participants about the future regulation of the industry.

Bitcoin hit a record high after the election results were announced, surpassing $75,000. Ethereum climbed 9.1% to $2,633, and Dogecoin rose 18% to nearly $0.20. And it's far from over: analysts at JPMorgan predict that under a Trump presidency, the price of Bitcoin could reach $125,000 by the end of 2024 and $200,000 by the end of 2025.

Shares of cryptocurrency-related companies also saw gains. MicroStrategy is up 13%, Coinbase Global is up 16%, MARA Holdings is up 9.7%, Riot Platforms Inc (RIOT) is up 11.7%, and HIVE Digital Technologies Ltd (HIVE) is up 11%.

Trump's victory intensified interest in cryptocurrencies, reflected in increased trading volumes and an influx of new investors into the market. Thus, the total trading volume of cryptocurrencies over the day increased by 5.5% to $2.55 trillion, with Bitcoin trading volume amounting to $230 billion, twice as much as the day before.

In addition, Trump's election campaign has stimulated investment in Bitcoin-ETFs: nearly $4 billion has been invested in Bitcoin-ETFs since October 2024, indicating a growing interest in cryptocurrencies among institutional investors.

Conclusion

Crypto experts believe that the recent U.S. election could be the start of another bull cycle. Bitcoin's halving, slowing inflation, and Trump's victory suggest that "capital can go into cryptocurrency, and there are all conditions for growth."