The world has been rocked by the US presidential election of 2024, and the cryptocurrency stock market is no different. Investors and traders are preparing for the possible effects on the market as Donald Trump gets ready to ascend to the throne a second time. But will stock and cryptocurrency aficionados benefit or suffer from Trump’s return? Let us examine it collectively:
The Trump Effect: A risky Ride for Crypto and stock traders.
Let’s be honest: love him or hate him, Trump’s impact on the cryptocurrency market cannot be ignored. Let us go back to Trump’s first term in office, when the crypto market experienced a turbulent ride of highs and lows, with Bitcoin’s value approaching $20,000 in 2017 before dropping back to around $3,000 in 2018.
You may wonder what caused this volatility. Some point to Trump’s unpredictable policy decisions and tweets, which frequently caused panic in the market. Others argue that his administration’s hawkish stance on regulation, particularly the SEC’s oversight of the cryptocurrency space, contributed to the market’s volatility.
The Pros: How Trump’s Return Could Send Crypto flying
Despite the risks, some experts believe Trump’s return could benefit the cryptocurrency market. Here are a couple of reasons why:
1. Deregulation: The Trump administration has been vocal about its desire to reduce regulations and promote innovation. This could create a more favourable environment for cryptocurrency startups and investors.
2. Tax Reform: Trump’s tax cuts have been a major contributor to economic growth, and some experts believe that his administration’s policies will lead to increased investment in the cryptocurrency space.
3. Geopolitical Tensions: Trump’s presidency has resulted in increased tensions with China and Russia. This could drive up demand for decentralised currencies such as Bitcoin, which are viewed as a hedge against inflation and geopolitical risk.
The Cons: How Trump’s Return May Send Crypto Crashing
Not everyone, of course, is hopeful that Trump will return. Here are some explanations:
1. Regulatory Uncertainty: The market may become more volatile and uncertain as a result of Trump’s administration’s erratic approach to crypto regulation.
2. Trade Wars: Market volatility has been significantly influenced by Trump’s trade policies, and some analysts predict that his administration’s trade wars may raise inflation and reduce demand for cryptocurrencies.
3. Central Bank Digital Currencies: In an effort to compete with decentralised currencies like Bitcoin, the Trump administration has been investigating the creation of a central bank digital currency (CBDC).
The Verdict: What to Expect from Trump’s Return
What can we anticipate from Trump’s comeback, then? In actuality, nobody is certain. Although he made many promises regarding the cryptocurrency market during his campaign, one thing is certain: the market is in for a ride.
It is necessary to remain informed and adjust to the shifting market environment, regardless of your level of experience as an investor. Get ready, people, and buckle up. I hope the market works in your favour.
