Crypto Stocks Surge as Trump Backs Bitcoin, Promises Industry Support
Cryptocurrency firms' shares rise following Donald Trump's pro-bitcoin statements and promises of friendlier regulation. The former president's potential return could significantly impact the crypto industry.
On July 29, 2024, cryptocurrency-related stocks experienced a notable uptick following Donald Trump's supportive comments about bitcoin and his pledge for more favorable industry regulations. This development comes as the former president positions himself as a pro-bitcoin candidate in the lead-up to the November 2024 U.S. presidential election.
Shares of several prominent crypto companies saw significant gains:
- Coinbase: up 3%
- Bitfarms, Riot Platforms, and CleanSpark: increased between 4% and 5%
Analysts at Bernstein suggest that any "Trump trade" strategy leading up to the election should include a greater allocation to bitcoin and bitcoin-linked stocks.
The cryptocurrency market has evolved considerably since its inception in 2009, moving from the periphery of finance to mainstream acceptance. This shift has been bolstered by institutional investor support and the recent approval of exchange-traded funds tied to bitcoin and ether spot prices.
Danny Scott, CEO of CoinCorner, noted the positive global sentiment in the crypto market this year, stating that it sets the stage for what many believe will be the next bull run in 2024-2025.
In contrast to Trump's stance, the current administration under President Joe Biden has maintained a more cautious approach. Gary Gensler, the Securities and Exchange Commission Chair, has consistently warned investors about the volatility and speculative nature of cryptocurrencies like bitcoin.
Trump has stated his intention to dismiss Gensler "on day one" if elected. He also proposed creating a national "stockpile" of bitcoin using cryptocurrency seized in law enforcement actions. This aligns with the fact that the FBI owns one of the largest Bitcoin wallets after seizing 144,000 BTC from Silk Road.
"We will create a national stockpile of bitcoin using the crypto the U.S. government currently holds."
The former president's plans include encouraging domestic bitcoin mining, which Bernstein analysts describe as a "Goldilocks scenario for bitcoin mining."
Amidst these developments, bitcoin's price surged past $70,000 for the first time since mid-June 2024. This price movement reflects the growing interest and adoption of cryptocurrencies, with over 18.5 million Bitcoins mined as of 2024 and more than 100,000 Bitcoin millionaires worldwide.
As the crypto industry continues to evolve, it remains a topic of significant interest and debate in the political and financial spheres. The outcome of the November 2024 election could have far-reaching implications for the future of cryptocurrency regulation and adoption in the United States.
