The cryptocurrency market surged following Donald Trump's victory in the 2024 US presidential election. HTX Ventures' research examines Bitcoin's role in the election.
How Crypto Became a Key Issue this Election Season
Cryptocurrency's popularity in the US is growing, and it has become a central topic in the current election cycle. Key factors include the increasing federal deficit and debt, making Bitcoin an attractive hedge against inflation. Stablecoins have also become significant in the financial system, being one of the largest holders of US Treasury securities. A survey showed that voters prefer candidates knowledgeable about crypto.
The Election's Impact on Crypto
Trump supports cryptocurrency innovations, aiming to position the US as the crypto capital of the world. He proposed creating a Bitcoin strategic reserve and a crypto advisory council, which could affect the regulatory environment. As a result, Polymarket, a leader in prediction markets, has gained media and investor attention.
The Future of Crypto Under the New President
Trump's victory may lead to a more favorable regulatory environment for crypto companies. Several companies are planning IPOs, potentially attracting more investment in the sector. A clearer regulatory framework is expected to reduce crypto business outflow and strengthen Bitcoin's position as a foundational asset.
Donald Trump's 2024 election victory presents opportunities and challenges for the cryptocurrency market. His administration is expected to support the development of the crypto industry in the US and influence its future evolution.
