ArticlesBitcoin
Bitcoin Reaches $75,000 Mark as US Election Results Unfold. But Is a Republican Triumph Really Good for Crypto?
check_eligibility

Gain Exclusive Access to the Yellow Network Waitlist

Join Now
check_eligibility

Bitcoin Reaches $75,000 Mark as US Election Results Unfold. But Is a Republican Triumph Really Good for Crypto?

Nov, 06 2024 17:09
article img

Donald Trump won, Republicans now have an almost full control of the Senate. And Bitcoin has touched a new all-time high of $75,361 as cryptocurrency markets react to US election results.

The digital asset's price movements reflect heightened trading activity across global exchanges. The total cryptocurrency market capitalization has climbed 8 per cent over 24 hours to reach $2.47 trillion.

Trading volumes suggest sustained buying pressure across major platforms as electoral data emerged.

Bitcoin's price action has demonstrated particular sensitivity to electoral developments. After reaching $75,361, the asset experienced a modest correction to $74,304, maintaining most of its gains.

Technical indicators suggest continued buying pressure. The Chaikin Money Flow index reads 0.17, indicating strong capital inflows. Market data shows increased trading volumes across spot and derivatives markets.

The price action reflects broader market response to potential policy directions. However, what happens after the election passions calm down is a totally different matter.

We’ve tried to figure out what market players think of how the cryptocurrencies would develop under the reign of Republicans. And here is what we’ve found.

Republicans Are Not Trustworthy?

Social networks are buzzing about the outcome of the election to the crypto market.

Trump has made substantial efforts to try to look like a guy who cares about crypto.

But not everyone buys it.

«Saying that Trump is pro-crypto is like saying a bank robber is pro-unmarked bills», one Redditor writes pointing out that the newly elected President has changed his stance on crypto in a rather radical way.

«In 2019 he said that Bitcoin was "based on thin air" and as recently as December of 2021, he called crypto "dangerous" and a "scam." But recently crypto has been very kind to him. One of his wallets has almost $6 million in it,» other Redditor points out.

Another user thinks Trump changed his stance on crypto in 2021 when Melania suddenly earned a large amount of money with NFTs.

Later it became obvious that Democrats are mostly negative - or, at least, passive - towards crypto, so Republicans decided to take the niche. Trump was advised (and it was a really good advice!) to make a number of very significant statements. Like the one about «all the Bitcoin to be mined in the US».

Other commenters also mention the new crypto business that Trump family has launched. «And of course don't forget about his newest scam DeFi project World Liberty Financial, where 75% of all protocol revenue goes to the Trump family (who also has no liability) and who couldn't keep their own website running during the rollout even though there wasn't much interest in the project», another Redditor adds.

Another important point is that Trump hardly even understands what crypto actually is. In one of his recent interviews he made an appalling statement: «It's so important. It's crypto. It's AI. It's so many other things. AI needs tremendous electricity capabilities beyond anything I ever heard.»

Other user point out that historically, Dems over-regulate and Republicans want less regulation. But neither of the two Presidential candidates really understood crypto, so deciding who to vote for based on their crypto stance was a nonsense.

And while pro-Reps keep saying that JD Vance and Robert Kennedy own a bunch of Bitcoin, and crypt fits in well with the general conservative ethos of circumventing the government, it’s under the Democrats we got the ETFs.

«Dems might be a tad hard on the regulation but it's a fact Sleepy Joe has done more for crypto than Trump, and that's with being anti-crypto supposedly», another Redditor added.

Why Most of the Forecasts Are Still Positive?

Coinbase CEO Brian Armstrong called the new U.S. Congress “the most pro-cryptocurrency in history.” He noted that there are over 200 pro-cryptocurrency supporters in the Senate and House of Representatives. Republicans now have a two-year majority.

That gives hope that those few Republicans who really care about crypto might have an actual chance to make real impact.

A few of the Trump’s promises also heavily influence the perception of the future by many experts. If he somehow manages to keep these promises, he might change the crypto horizon in a very profound way.

For instance, Trump has been vocal about replacing SEC Chair Gary Gensler, a key figure in the Biden administration’s regulatory stance on crypto. By promising to “fire Gensler on day one,” Trump signals a sharp pivot towards a more lenient regulatory environment.

Nobody knows if this is really happening, but the consequences may be enormous. SEC’s war against respectable and very legit cryptocurrencies like Ripple’s XRP has been a real hurdle for the crypto market.

Just to see how important this seems to myriad of users, take a look at a popular comment many Redditors posted right before the election: «I don't care who wins BUT Gary Geinsler needs to go».

The current regulatory framework has posed challenges for crypto exchanges, hindering widespread adoption due to heightened compliance requirements. Trump’s plans to appoint a crypto-friendly SEC leader could reduce these barriers, attracting more institutional interest and fostering a pro-crypto landscape. Experts argue that replacing Gensler could provide an “open door” for digital asset firms to innovate without fearing constant scrutiny.

Trump’s pro-crypto rhetoric has already sparked anticipation in the market, with investors expecting a substantial rise in Bitcoin prices if he wins. Analysts at Bitwise and Cointelegraph predict a surge, with projections reaching up to $92,000–$100,000.

Final Thoughts

Some experts think that despite all the chances that Trump is not going to fulfill even half of his promises, this potential increase stems from anticipated regulatory relief, which would foster a favorable environment for institutional players previously cautious due to regulatory concerns.

Regardless of how sincere Republicans really are, their win would signal to investors a more stable crypto ecosystem, with fewer regulatory threats, some commenters say. Consequently, the market could experience heightened confidence, driving Bitcoin’s price upward as more investors view it as a viable, deregulated asset.

Others say that Republicans’ influence on crypto market wouldn’t be noticeably different from the one the Democrats would have. Trump isn’t the «savior» of crypto, everybody hopes he just wouldn’t stand in the way of its healthy development.

More Articles About Bitcoin
Show All Articles