What is Next for the Crypto Industry Following Trump’s Victory?

The crypto industry is highly volatile. Therefore, it is subject to changes that can be mild or serious, and fast or slow. Due to this volatility, it is affected by events happening around the world such as natural disasters and economic boom or crisis of economically big countries. A recent example is the COVID-19 pandemic. At the beginning of the pandemic in March 2020 Bitcoin saw an astonishing crash of 50%.

One of such events that has affected the crypto market is the just concluded US elections. Prior to the elections, there were major events that brought about major changes in the crypto industry. With Donald Trump emerging as the winner of the just concluded elections, we are going to see some more changes in the crypto industry.
Will these changes be good or bad? In this article, we will explore what this victory means for the crypto industry.

Let’s get started!

Trump’s win boosts crypto prices

The market immediately became bullish following Trump’s predicted win in the elections. Just a few hours after he emerged as the winner, major crypto currencies saw a huge boost with Bitcoin reaching a record high of $76,400. Other coins like Ethereum and Solana were not left out. Ethereum climbed above $2,839 while Solana approached $190. This surge is as a result of the President-elect’s pro-crypto stance which is set to create a more favorable climate for the crypto market. Experts and crypto analysts predict that this pro-crypto stance could be the fuel for the next bull run, a mega bull run.

In his campaign, the president-elect maintained his advocacy for crypto. Teaming up with him, other senators and party members in the house of representatives have adopted a similar stance. In a social media post made by Senator Cynthia Lummis, she said the new government is going to build a strategic Bitcoin reserve.

Trump’s policies on crypto regulations will help to reduce the regulatory burden on digital assets and support the crypto industry. This is expected to fuel further price increases, and create a good climate for the crypto industry. If the president-elect stays true to his words, there will be a massive integration of crypto currency in the US financial system. This will lead to a huge influx of digital asset based investments which could further increase the price of cryptocurrencies.

History of US elections and Bitcoin surge

Analysis shows that the price surges of Bitcoin and other crypto coins adopt an upward surge during the US elections. It is most important to note that the price changes with this surge has never returned to its pre-election price. Therefore, we can say that the US elections are a major deciding factor in the price of Bitcoin.

Since its first launch in 2009, the price of Bitcoin has followed this trend for three consecutive elections.

• In 2012, the price of Bitcoin price rose by nearly 10,000%. It finally stabilized within a year following the election, to $1,100 from an initial price of $11.
• Similarly, in 2016, Bitcoin price surged from around $700 to $18,000 by December 2017, a year after the elections.
• Also, in 2020 around the elections in November, Bitcoin price surged by 478%, stabilizing around $69,000 within a year of the election.
• Following this pattern we expect to see another increase in the price of Bitcoin. Therefore, it is safe to say the bull market is still on. However, we must also expect a diminished price following the surge but in spite of this, we should still see a price jump for Bitcoin.

What is next for the crypto industry?

Experts predict that there will be a surge in the price of crypto. This is due to the crypto advocacy preached by Donald Trump, senators and members of the house of representatives. Also, the proposed new crypto regulatory policies would encourage a wider adoption of crypto and lead to a more stable price of these digital assets.

Despite the wide excitement in the crypto industry following the Trump pro-crypto victory, this price surge might only be short term. On the long-term, there are various factors that contribute to the increase and stability in the crypto industry.
Some experts believe that the mega bull market is not sustainable in the long run. Considering that the president-elect comes through with his promises, external factors such as inflation, market volatility and changes in interest rates may affect the bull run market. It may also be affected by the reaction of the market to these new policies. If the policies are not well received by the market, it may affect the volatility of the crypto market. Therefore, in the long run, external factors are crucial to the stability of the crypto market.

Conclusion

It’s no doubt that the US elections and its results are important determinants of the price of cryptocurrency. Following the existing trend, we could see a stable significant increase in the price of crypto currency. With Trump’s led pro-crypto government, it is certain that the crypto market will be bullish in the short term. in the long term, several external factors may contribute to the sustainability of this bullish market.

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