The "Trump Trade" Sweeps Through Financial Markets: Bitcoin Surges, Dawn of Crypto?Recent political turmoil in the United States, with former President Trump facing a barrage of attacks, has unexpectedly yielded political dividends for him. Following these events, Trumps approval ratings have soared, and market expectations of his return to the political arena have been fueled
The "Trump Trade" Sweeps Through Financial Markets: Bitcoin Surges, Dawn of Crypto?
Recent political turmoil in the United States, with former President Trump facing a barrage of attacks, has unexpectedly yielded political dividends for him. Following these events, Trumps approval ratings have soared, and market expectations of his return to the political arena have been fueled. Meanwhile, a collection of assets, dubbed the "Trump trade," have experienced a collective surge in prices, with Bitcoin's strong performance being the most notable.
Bitcoin Soars for Two Consecutive Days, Reaching New Highs: Affected by the Trump incident, Bitcoin prices have risen for two consecutive days, climbing 5.7% on Monday, breaking through $63,768 and hitting a two-week high. Martin Leinweber, Director of Research and Strategy at MarketVector Digital Assets, believes that the rise in Trump's support has driven a general increase in risk assets, with Bitcoin, being a risk asset, naturally attracting favor.
Republican Platform Champions Cryptocurrency, Trump Embraces Digital Assets: More importantly, the Republican Party released its "2024 Republican Party Platform: Make America Great Again" on Monday, which explicitly states its commitment to ending the Democratic Party's suppression of cryptocurrency and defending the right to mine Bitcoin, ensuring Americans have the right to self-custody of digital assets and the freedom to trade. This platform has been interpreted as a sign that if Trump is elected, he will choose to embrace cryptocurrency, signifying a significant boon for the cryptocurrency industry.
Biden Administration Strictly Regulates Cryptocurrency, Trump Would Bring Industry Transformation: Over the last few years, the Biden administration has implemented stringent regulatory measures, even going as far as suppressing the cryptocurrency industry. The Securities and Exchange Commission (SEC) has launched lawsuits against cryptocurrency trading platforms like FTX, Binance, and Coindesk, imposing over $5 billion in fines. The SEC has also openly opposed the U.S. Congress formulating regulations for crypto assets, asserting that the vast majority of cryptocurrency issuers operate in an unregulated state, violating federal securities laws.
However, if Trump is elected, America's stance on cryptocurrency would undergo a 180-degree shift. While Trump previously criticized cryptocurrency during his previous term, he has since changed his stance and begun embracing the industry. He even met with cryptocurrency industry figures at his Mar-a-Lago estate in June, advocating for keeping Bitcoin mining activities within the U.S., believing it would help America gain dominance in the energy sector. Furthermore, Trump's campaign team began accepting Bitcoin as campaign donations as early as May.
Trump "Infects" Democrats, Bipartisan Competition to Embrace Cryptocurrency: Trump's shift in attitude towards cryptocurrency has even "infected" some Democratic members of Congress. Last month, dozens of House Democrats also voted in favor of a financial innovation bill, indicating that neither the Republican nor Democratic parties wish for voters to perceive them as anti-cryptocurrency.
Trump Campaign Strategy, Utilizing Cryptocurrency to Win Over Young Voters: Analysts point out that Trump's decision to appease the "Cryptosphere" is part of his campaign strategy. As the U.S. presidential election in November approaches, Trump might utilize cryptocurrency as a key tool to win over young voters and supporters of financial technology innovation.
Cryptocurrency Industry Faces Historic Breakthrough, Future Holds Promise: Katie Biber, Chief Legal Officer at cryptocurrency investment firm Paradigm, asserts that the inclusion of cryptocurrency in the Republican platform represents a historical breakthrough. It signifies that cryptocurrency is no longer a fringe concept but is gradually becoming part of mainstream society.
Trump's Election Would Usher in a New Era of Opportunity for the Cryptocurrency Industry: Trump's political stance and policy leanings have brought new hope to the cryptocurrency industry. If Trump ultimately wins the election, cryptocurrency would gain a more favorable regulatory environment, fostering industry growth and attracting more investments.
Conclusion: The rise of the "Trump trade" reflects not only the market's sensitive response to political developments but also highlights the immense potential and future trends of the cryptocurrency industry. Regardless of whether Trump eventually wins the election, cryptocurrency, as a budding financial technology tool, will continue attracting market attention, and its future development holds much promise.
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