Donald Trump, the Repbulican nominee, has reiterated his commitment to establish the United States as the world leader in cryptocurrency. This declaration came during his recent address at the Economic Club of New York where he stated:
“Rather than opposing emerging industries, we will welcome them, with the aim of positioning America as the global hub for digital currency, including Bitcoin.”
This renewed promise echoes a similar statement made by the former president last week.
Trump’s Shift Towards Embracing Bitcoin
During his presidency, Trump was a vocal critic of Bitcoin and cryptocurrencies, describing BTC as a “disaster in the making” and a “fraud.” However, he has since made a significant pivot in his stance, emerging as a staunch supporter of Bitcoin in his pursuit of a second presidential term.
An important moment showcasing his pro-crypto stance was his participation in the Bitcoin Conference held in Nashville this year, where he proposed the creation of a national strategic reserve for digital assets.
Furthermore, Trump’s family has been actively involved in the crypto space, introducing new decentralized finance (DeFi) initiatives such as World Liberty Financial and ‘The Defiant Ones’ with the goal of revitalizing the financial sector.
While the family’s crypto ventures have garnered mixed responses, Trump himself has gained support within the market, receiving increased donations from cryptocurrency companies and individuals.
This surge in support has notably benefitted Fairshake, a pro-crypto super PAC in the U.S, with leading players like Coinbase and Ripple contributing to endorse pro-crypto candidates.
According to predictions from Polymarket, Trump maintains higher odds of winning the election compared to Kamala Harris, leading her by 7 points on the platform. However, the rapidly changing political landscape makes any prediction uncertain, with fluctuations possible in the coming months.
Despite the uncertainties, some market analysts like Quinn Thompson of Lekker Capital express confidence in Trump’s potential victory. Thompson believes that in such a scenario, the current value of Bitcoin would be underestimated, along with other assets like the 10-year yield and the commodity/energy market.
“As we approach the US election, the potential mispricings of assets in the event of a Trump victory are significant. Imagine Bitcoin at $57,000, with a 10-year yield of 3.77%, and the commodity/energy sector trading at historically low levels.”