The impact of Trump's election on Bitcoin

CN
12 days ago

The U.S. election has finally come to a conclusion.

The American people have determined the direction of the country for the next four years with their votes.

As a result of this election, the Republican Party not only won the presidency but also gained control of the Senate and is likely to solidify its majority in the House of Representatives.

The Republican Party will unify the "world."

This high degree of centralization means that Trump will not face significant obstacles in implementing policies during his upcoming term.

It is also worth noting that the next four-year term will be Trump's last. From a governance perspective, he does not have the pressure of re-election, so he will not have many concerns in policy-making and will undoubtedly strive to reshape America according to his inner thoughts.

Now, both the objective environment and subjective willingness allow him to push forward vigorously and act freely.

Whether the next four years will be radical or crazy for the U.S. and the world, we shall see.

In light of Trump's significant power, what concerns participants in our crypto ecosystem the most is what kind of crypto policies he will introduce next.

The market is the best reflection of people's expectations. While Trump was leading significantly, Bitcoin surged to new highs, exceeding $75,000 at one point.

This shows how high everyone's expectations are for Trump.

After Trump's election, someone online summarized his points from this year's Bitcoin conference speech, and I have extracted some important points that are directly related to us:

  • He will fire Gary Gensler and appoint a new SEC chairman.
  • If elected, he will establish a strategic national Bitcoin reserve for the U.S. government.
  • The U.S. government will retain 100% of its Bitcoin holdings.
  • The U.S. will become the global cryptocurrency capital and a Bitcoin superpower.

If Trump genuinely recognizes crypto assets and understands the extremely important role of crypto technology in the competition between nations, these points are certainly achievable and will be pursued.

Moreover, aside from the crypto industry, looking at Trump's overall governance approach, he essentially continues the traditional Republican philosophy of small government, reducing intervention, deregulating businesses, and cutting taxes for companies.

Therefore, from an overall perspective, even in the worst-case scenario, he will not impose excessive intervention on the crypto industry, which is the biggest difference between him and the Democratic government.

As long as there is not too much intervention, I believe the U.S. crypto industry and businesses will fare much better in the coming days.

So, whether from his individual attitude towards the crypto industry or from his overall approach, the next four years will provide a relatively relaxed environment for the crypto industry in the U.S.

If under these circumstances, he can also introduce some of the policies he has promised, then crypto assets will certainly have more room for growth.

However, I remain somewhat cautious about how much this purely U.S. government-driven momentum can benefit the entire crypto ecosystem.

First, from the existing statements of Trump and traditional American politicians, their focus and attention are still primarily on Bitcoin.

Additionally, when Trump was leading and Bitcoin was surging to new highs, I noticed that other coins (including Ethereum) only saw slight increases, and their appeal could not compare to Bitcoin.

Thus, I increasingly feel that if the crypto ecosystem relies solely on this single momentum from the U.S. government (without internal application ecosystem innovation), then in the upcoming trends, it is likely that only Bitcoin will benefit the most, while other coins will merely follow suit, but most will probably not exceed Bitcoin's growth.

Such an increase lacks sustainability.

Previously, I estimated that Bitcoin could reach $100,000 next year, and now I believe this even more.

However, more and more people are calling for $150,000 or even $200,000, which I find hard to imagine.

Because it is difficult to judge how long this situation, which only benefits Bitcoin, can last and how high it can push Bitcoin. Trump's story may last a few months, but can it last six months? A year?

Without sustainability, what force can desperately push Bitcoin's price higher?

Relying on large capital to continuously raise the stakes?

Even if the U.S. government includes it in its strategic reserves, that is a long-term, gradual process, not something that happens overnight.

I still hope that the entire crypto ecosystem can "join forces" under both external support and internal application innovation, so that not only Bitcoin rises significantly, but also many mainstream coins in the ecosystem can exceed Bitcoin's growth, leading to the bull market we anticipate.

The new president, holding significant power, will take office in January next year, and within one to two months after taking office, a series of his policies will be rolled out rapidly.

I hope that next year we can witness a new chapter in the crypto ecosystem.

This Saturday, November 9, at 8 PM, we will hold an online discussion on Twitter Spaces.

If you have questions, you can reply to this post: https://x.com/DaosViews/status/1852148588790583613

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