Trump’s crypto embrace is bullish for Bitcoin

May 28, 2024
Nigel Green

FORMER US President Donald Trump has emerged as a surprising advocate for the crypto industry as the campaigning for the US presidential election in November goes up a gear.

This pivot towards pro-crypto rhetoric and actions comes at a crucial moment, as Trump leads President Joe Biden across seven key swing states - Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin - according to a new Bloomberg News/Morning Consult survey.

With Trump holding a 48% to 44% lead over Biden in these pivotal states, his support for cryptocurrency in the world’s largest economy could have significant implications not just for his campaign, but for the future of digital currencies like Bitcoin.

Trump’s pro-crypto shift

In a recent social media post, Trump stated: “I am very positive and open minded to cryptocurrency companies and all things related to this new and burgeoning industry.”

This public endorsement is a marked departure from his previous ambivalence towards digital currencies.

The latest comments were made ahead of his address at the Libertarian National Convention in Washington DC, further solidifying his commitment to the crypto community.

Trump’s pro-crypto stance was underscored by his criticism of President Biden, whom he labelled “the worst president in the history of our country”.

He accused the incumbent of wanting the cryptocurrency industry to “die a slow and painful death”.

This rhetorical strategy aims to position Trump as the candidate of innovation and economic progress, in stark contrast to Biden’s more cautious approach.

A series of pro-crypto moves

Trump’s recent embrace of crypto is not just rhetorical.

Earlier this month, he made pro-crypto comments at a Mar-a-Lago dinner, signalling his intention to support the industry actively.

Last week, Trump’s presidential campaign began accepting crypto donations, making him the first major party candidate to do so. This move is a clear attempt to galvanize support from the growing community of crypto enthusiasts and investors.

The acceptance of Bitcoin, Ether, and other digital currencies for campaign contributions represents a significant step towards mainstream adoption of cryptocurrency in the political arena. It demonstrates a recognition of the financial and ideological clout of crypto advocates, who have long sought greater legitimacy and acceptance for digital currencies.

Impact on Washington’s stance

Trump’s actions have not gone unnoticed in Washington.

In a noticeable shift, the traditionally crypto-adverse Securities and Exchange Commission (SEC), the financial watchdog, and the Biden administration have shown signs of softening their stance towards digital currencies.

Last Wednesday, the White House issued a statement expressing opposition to the House of Representatives passing a crypto market structure bill. However, notably, Biden did not threaten a veto, indicating a potential openness to compromise.

The House’s approval of the measure, which now heads to the Senate, marks a significant legislative milestone for the crypto industry.

Following this, the SEC approved key regulatory filings for Ether exchange-traded funds (ETFs) on Thursday. Such an approval, deemed unlikely just a month ago, signals a regulatory environment that is becoming increasingly favourable towards cryptocurrency.

Bullish implications for Bitcoin

Trump’s embrace of crypto, coupled with the shifting regulatory landscape, is undeniably bullish for Bitcoin’s long-term price trajectory.

The former president’s support brings significant attention and legitimacy to the industry, which can be expected to attract a new wave of investors.

By accepting crypto donations, his campaign paves the way for broader acceptance and integration of digital currencies in mainstream financial systems.

The potential regulatory changes are also promising. If the Senate passes the crypto market structure bill and the ether ETFs become available in the US, it would represent major victories for the industry. These developments could lead to increased investment and stability in the crypto markets, driving up the value of Bitcoin and other digital currencies.

In addition, the political endorsement from a figure as prominent as Trump could mitigate some of the scepticism surrounding Bitcoin, encouraging institutional investors, who have been wary of regulatory uncertainties, to enter the market.

The resulting influx of capital could propel Bitcoin to new heights, reinforcing its position as the leading digital currency.

I’m confident that Trump’s newfound support for crypto as the race to the White House intensifies signals a transformative moment and is bullish on price for the digital currency market.

Nigel Green, deVere Group CEO and founder