How will Trump’s presidency affect crypto?
Before Donald Trump won the US election on November 5, it was widely believed among crypto investors that the Trump administration would be more crypto-friendly than the Kamala Harris administration. This view was reinforced by Elon Musk’s public support for Trump. The idea was simple: since Musk is a supporter of crypto-including meme coins like dogecoin-this could somehow remove or influence Trump’s view of crypto.
The markets have confirmed that belief. On the night of the US election-as it became clear that Trump would win-the price of bitcoin jumped by about 8%, from about $69,400 to $75,000 (figures are in US dollars). With this move, bitcoin recorded a new all-time high, surpassing the March 2024 high of $73,000. In the days since the election, the price of BTC has continued to rise, and at the time of publication it was over $85,000.
Source: Google
Hold your horses, though; we have yet to see what the Trump presidency will really mean for crypto legislation in the US Also, while the POTUS is important in deciding what happens with crypto, he is not holding it. everything cards. More importantly he is the chairman of the US Securities and Exchange Commission (SEC). That’s Gary Gensler, an MIT professor with expertise in bitcoin and blockchain—he even taught a course called “Blockchain and Money.” However, despite this, Gensler is widely considered to be hawkish on crypto when he heads the SEC, starting in June 2021. The question for investors is: With Trump in power, will Gensler be allowed to finish his term until June 2026? And if he is replaced, will the new chairman be crypto-friendly?
Given this uncertainty, one explanation for the BTC price jump is the expectation of inflation associated with a Trump presidency. Trump brings with him the prospect of tariff wars with key US trading partners like China. When the prices of imported goods rise, the cost of those products to consumers also rises. In other words, inflation is rising. Also, as explained in our previous column, higher inflation can lead to higher crypto prices.
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Bitcoin hits $100,000
On October 29, 2024, BTC touched $100,000… Canadian dollars.
Canadians tend to track crypto prices in US dollars, and rightly so, because that is very important in the crypto market. However, last week, the price of BTC reached the important milestone of 100,000 $.
Does this really matter? Just a little.
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