It is now certain: Donald Trump will be inaugurated as the 47th President of the United States on January 20. For the crypto ecosystem, this news is a sign of many changes to come. Let's see together the different possibilities for the evolution of the cryptocurrency market in the coming years.
How could the crypto ecosystem evolve following Donald Trump's victory in the American presidential elections?
Donald Trump's victory in the US presidential elections constitutes a breath of fresh air for many supporters of cryptocurrencies who knew his favorable position on the matter. In recent hours, several analysts have tried to predict the various developments that will impact the crypto market in the coming years.
For Daniel Cheung, co-founder of SyncracyCapital, an investment fund specializing in the crypto industry, “ the presidency of Donald Trump is a 4-year call option on the cryptocurrency markets which will create an environment in which we could truly have a legendary supercycle “.
I believe that crypto is potentially headed for a biblical bull market in the coming months that could surpass 2021 – some thoughts on the current market setup under a Trump Administration:
1) Trump presidency is a 4 year call option on crypto markets (ie Gensler fired, US…
— Daniel Cheung (@HighCoinviction) November 6, 2024
To support his remarks, the analyst notably referred to one of Donald Trump's promisesnamely firing Gary Gensler from his post as chairman of the Securities and Exchange Commission (SEC). The latter is particularly known for having adopted a conservative position having put obstacles in the way of players in the crypto industry.
🔎 From good cop to bad cop: how the SEC turned away from its initial role
Daniel Cheung and other analysts mention the use of Bitcoin (BTC) as a reserve value by the United States Department of Treasury. This is one of the flagship measures of the Bitcoin Act, the bill carried by Republican Senator Cynthia Lummis.
Of course, for many in the crypto community, the election of Donald Trump as President of the United States combined with a Republican majority in Congress would open the door to the establishment of regulations in favor of the use of cryptocurrencies.
According to an advisor to the decentralized Kamino Finance protocol, this new legislative framework would make it much easier for tokens to capture the value of the protocols they are associated with. Also, tokens could be considered as commodities and not as securities.
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Towards an increase in the crypto investment offer in the United States?
With pro crypto regulations, banks could interact more easily with players in the sectorsuggesting an increase in partnerships between financial institutions and exchanges, but also a greater adoption of blockchain on American soil.
In the event that the crypto market opens up further, entrepreneurs and developers might be tempted to open their own companies. More and more crypto projects will emerge, which will allow to promote innovation and the democratization of blockchain and cryptocurrencies.
In addition to a change in regulations on American soil, the investment offer could well expand. Several members of the crypto community thus mention the launch of the native OpenSea token as well as that of the decentralized market prediction platform Polymarket. In the same way, Consensys could launch a cryptocurrency associated with the MetaMask wallet.
👉 Also read – Is Trump’s victory really 100% favorable to Bitcoin? Vincent Ganne's analysis
In another register, more and more companies would request approval to issue their own ETFs. For Daniel Cheung, Solana (SOL) spot ETFs will be approved from the 1st quarter of 2025, which would allow the cryptocurrency “ to cross the $1,000 mark, placing itself in competition with Ether [ETH] “.
Finally, large, well-established crypto groups could make their IPO. In the sights of analysts, an IPO of Circlethe company behind USDC, the stablecoin with the largest market cap behind Tether's USDT.
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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