The 2024 US election has come to an end, and Trump has been successfully elected as the new US president , and also the first Bitcoin president. Analysts at the StarEx exchange believe that a new long-term bull market cycle may be ushered in . Trump's policy stance and his attitude towards cryptocurrencies are very friendly. During the campaign, Trump proposed policy measures to support the development of Bitcoin and cryptocurrencies. He once said that he wanted to make the United States a " Bitcoin country " and make Bitcoin a national strategic reserve of the United States . Trump made the following promises:
Will fire Gary Gensler , chairman of the U.S. Securities and Exchange Commission (SEC) , and repeal regulatory policies that are unfavorable to cryptocurrencies;
Establish a national Bitcoin reserve to enhance the importance of Bitcoin at the national level;
Make the United States the " global cryptocurrency capital " ;
Keep the more than 200,000 bitcoins currently held by the US government ;
Eliminate capital gains tax on Bitcoin to reduce the tax burden on crypto investments;
Support the Bitcoin mining industry in the United States and increase Bitcoin production capacity;
Established the " Presidential Advisory Committee on Bitcoin and Cryptocurrency " to provide policy guidance for the crypto industry;
Protect individuals’ right to self-custody of digital assets and enhance public trust in crypto assets;
Refuse to issue a digital dollar ( CBDC ) to maintain the market-based freedom of the existing financial system;
Commuted the life sentence of Silk Road founder Ross Ulbricht .
The Trump administration's support for cryptocurrencies is seen as one of the key factors driving the cryptocurrency market toward a long-term bull market . Stimulated by the good news of Trump's election, Bitcoin quickly broke through the all-time high of $75,000 after his election . The entire crypto market is full of enthusiasm , and investors are optimistic about the prospects of the crypto market under Trump's administration.
Trump supports interest rate cuts and a strong dollar policy, and plans to implement trade protectionism and increase tariffs. These policies may push up capital inflation, bringing inflation to the market. Cryptocurrency, especially Bitcoin, is seen as a tool to fight inflation and is favored by investors. Analysts at the Star Ex exchange believe that more importantly, Trump's policies may also indirectly increase the demand for Bitcoin. Faced with high debt, high inflation and fiscal deficits in the United States, the Trump administration may continue to expand the money supply. In this economic situation, more people may regard Bitcoin as a kind of " digital gold " to fight the risk of dollar depreciation. Due to the scarcity and decentralization of Bitcoin, it has increasingly become a means for people to pursue wealth preservation.
However, while the cryptocurrency market is full of expectations for Trump , the challenges facing the U.S. economy cannot be underestimated. Currently, the U.S. government debt is as high as 35 trillion U.S. dollars, the interest rate is over 4% , and the Fed's balance sheet reduction policy is still ongoing. In addition, the high valuation of U.S. stocks that may be caused by the technology bubble has also brought uncertainty to the market.
Under Trump’s administration, it is expected that the market may relax its tolerance for inflation and increase money supply in an attempt to ease inflation. If this strategy is adopted, not only may gold prices rise, but Bitcoin, as “ digital gold ”, may also have exciting opportunities to rise.
Analysts at the StarEx exchange believe that in the short term, liquidity is still an important factor in determining market conditions. Although the " Trump deal " has brought short-term trading sentiment, it will be difficult for the market to maintain its upward trend without sufficient capital inflows.
Two days before the US election, Bitcoin ETF funds saw a large outflow. After Trump was elected, BlackRock ETF funds even flowed out. We need to pay close attention to whether Bitcoin ETF funds will continue to flow in. In addition, the Fed's interest rate cuts, the yen's interest rate hikes, and the economic performance in the next few months will be key factors in determining the long-term trend of the cryptocurrency market.
Analysts at StarEx Exchange believe that the current policy direction of the Federal Reserve is still unclear, and the market is still waiting for more economic data to be released. Before that, the cryptocurrency market may continue to maintain a pattern of large fluctuations. After Trump takes office, his economic policies will have a significant impact on the trend of the crypto market. In particular, whether his cryptocurrency policy can be implemented will have a direct relationship with Bitcoin and other crypto assets, and whether a new round of bull market can be launched.
