Trump's Victory & Bitcoin’s Rise: A New Era for US Crypto

As America begins a new chapter under Donald Trump's administration, many are wondering if we are entering the golden age of crypto. Oh btw, it’s not just crypto. 

Over $1.28T was added to the US stock market the day Trump was elected!

Now, let’s look at what has happened to crypto. The overall market cap is on the verge of crossing $3T, and both BTC and ETH have crossed important psychological price levels. 

In today’s newsletter, let’s take a look at what Bitcoin and Crypto will look like in the Trump era.

Trump’s Crypto Commitments: Stockpiles, Mining, and More

Trump has made some big promises to the crypto community that could transform the US digital asset landscape, potentially even on a global scale

• Strategic Bitcoin Reserve: Trump has promised that under his administration, the federal government will hold and protect all of the crypto assets it has seized, including Bitcoin, rather than selling them off at auction as has been customary. Trump’s proposed stockpile would secure the government’s Bitcoin holdings and potentially grow them over time, giving cryptocurrency a unique place in the nation’s financial assets. 

• Bitcoin Mining Made in the USA: The administration’s new “Made in the USA” approach to Bitcoin mining could also mean a surge in jobs and investments within the American mining industry, benefiting major US-based mining companies like Marathon Digital, Riot Platforms, and CleanSpark. Trump’s vision of energy dominance aligns with this goal, as he anticipates that the US could become a leading producer of Bitcoin by boosting its mining capacity, potentially even setting energy policy to support this burgeoning industry.

Crypto Surges Post-Election: A New Era Begins

Bitcoin and the broader crypto market have seen a remarkable upswing following Trump’s election victory. Bitcoin jumped past $80,000 and Ethereum crossed $3,000. 

With Trump’s victory, the sentiment among the crypto community has turned overwhelmingly optimistic, fueling expectations that the US may adopt a more favorable stance toward digital assets and blockchain innovation.

Charles Cascarilla, CEO of the blockchain platform Paxos, expressed confidence in Trump’s impact on the crypto space, noting that the new administration “opens a real opportunity for a crypto golden age.” 

Investors and institutions alike are hopeful that a supportive administration could propel the US to the forefront of the global crypto movement, which until now has seen much regulatory tension and uncertainty.

With Trump’s campaign promises and the early actions of his administration, we could be looking at an era that positions the US as a serious crypto powerhouse.

Regulatory Reset: Goodbye Gensler?

In the previous administration, crypto was seemingly under daily attack from the three stooges - Gary Gensler, Elizabeth Warren, and Nancy Pelosi.

While Warren and Pelosi have both been re-elected, Gensler finds his position in a tenuous situation. Earlier during his speech at Bitcoin 2024, Trump pledged to “end the SEC’s anti-crypto crusade” and “fire Gary Gensler on day one.” 

While removing the SEC chair is more complicated than it sounds, industry insiders are optimistic about a shift in leadership. This change could bring long-desired regulatory clarity, helping firms like Coinbase and Binance avoid legal hurdles and paving the way for a more growth-friendly environment.

The new administration could also prioritize stablecoin regulation, leveling the playing field between Tether (USDT) and Circle (USDC) by setting clear guidelines. Tether, with its connections to Trump’s ally, Howard Lutnick of Cantor Fitzgerald, is expected to gain from this relaxed approach.

Overall, the regulated environment around crypto is definitely going to change and become less hostile. We might see the likes of Hester Pierce take a more authoritative role in the overall setup.

ETFs, Decentralized Finance, and Broader Market Gains

With a crypto-friendly administration, the US could soon see a surge of new crypto products, including a potential spot ETF for Solana and clearer regulatory guidelines for Ethereum and other smart contract platforms. 

Trump’s commitment to establishing the US as a hub for decentralized finance (DeFi) may lead to more lenient regulations on token offerings, which could fuel significant growth across the sector.

In anticipation of this shift, DeFi tokens like Uniswap and Aave surged by >10% within 24 hours of Trump’s election win. 

Meanwhile, overall DeFi TVL has also crossed $100B.

With a supportive regulatory framework, DeFi platforms could finally gain a solid foundation to operate within the US, ushering in a new era of innovation and expansion in decentralized finance.

Final Thoughts

Optimism is high, with some experts forecasting Bitcoin could reach $100,000 by year’s end. Matt Hougan, CIO of Bitwise, believes that increased regulatory clarity will benefit the crypto markets, attracting more institutional investment and driving prices to new highs.

A more accommodating regulatory environment, the potential establishment of a national crypto reserve, and a thriving domestic mining industry could redefine America’s role within the global crypto ecosystem.

However, potential risks remain. Trump’s proposed tariffs on China could push consumer prices up, which may keep interest rates elevated and affect “risk-on” assets like Bitcoin. Still, the overall sentiment remains bullish as investors look forward to potential rate cuts, which have historically provided a boost to crypto prices.

As always, stay informed and exercise caution with your investments. Instead of falling for trends and investing purely out of FOMO, it is very important to make informed trades. This is exactly why we created the Coiners group, a community for crypto traders from all around the world.

This past week, John, one of our mentors took some fast profits on a couple of coins he had previously opened positions in -RAY and CLOUD.

That’s pretty much what our mentors do. They will tell you which coins to open positions in and when to take profit.

Now that the market is pumping as expected after Trump’s win, it’s more important than ever to be vigilant about profit-taking scenarios.

Don’t be left behind.