Trump election win set to kick off ‘golden age of crypto’ in the US – Bitwise CIO

Bitwise CIO Matthew Hougan stated in a November 6 memo that Donald Trump’s victory is a reality the American presidential elections will catalyze a ‘Golden Age of Crypto’ as the brand new administration will enhance the regulatory panorama.

Crypto markets rose considerably when Trump’s possibilities of successful the election rose above 95% on the prediction markets. Bitcoin (BTC) hit a brand new all-time excessive of round $75,650 after months of value motion inside the vary.

On the time of writing, the flagship crypto was buying and selling at $75,300, up 7.69% from the previous day, based mostly on CryptoSlate information.

Nevertheless, not all cryptocurrencies have carried out equally over the previous 24 hours, with Hougan highlighting this hole to warn buyers to be ‘extra selective’ with their investments.

Regulatory obstacles are falling away

In response to Hougan, the primary elementary change in a pro-crypto presidency could be a shift within the hostile method of the US Securities and Trade Fee (SEC) and different regulators in the direction of the sector.

The Bitwise CIO stated:

“Crypto has been working with each fingers tied behind its again for the previous 4 years.”

In recent times, the SEC has taken a “regulation by enforcement” method, submitting lawsuits in opposition to crypto corporations, normally for distributing unregistered securities, with out disclosing what guidelines these corporations have violated.

Many have stated the regulator’s method has stifled the sector’s development. The criticism is echoed internally, together with by Commissioner Hester Peirce, who instructed lawmakers at a listening to that the SEC’s method to cryptocurrencies has been a catastrophe.

In the meantime, Coinbase CLO Paul Grewal lately unveiled that the The Federal Deposit Insurance coverage Company (FDIC) had ordered banks to chorus from providing crypto companies in additional than twenty incidents.

Hougan believes the brand new administration is anticipated to be supportive, given Trump’s pleasant feedback concerning the crypto trade throughout his marketing campaign. This modification in stance consists of new management on the SEC and a doable finish to restrictive practices corresponding to Operation Choke Level 2.0.

Hougan believes the sector is prepared for “higher institutional funding” and broader adoption as these shifts materialize. The trade can now give attention to innovation unhindered by regulatory hurdles, doubtlessly accelerating the mainstream integration of crypto.

Driving costs

Regardless of vital value will increase prior to now 24 hours, Hougan identified that crypto was already exhibiting stable fundamentals. He cited strong institutional demand, with inflows of greater than $23 billion into Bitcoin Trade-Traded Funds (ETF) and rising curiosity from high hedge funds and blue chip establishments.

Moreover, Bitcoin’s halving in April 2024, together with rising real-world examples corresponding to stablecoins and the Polymarket prediction market, additionally supplied a robust basis for development.

In the meantime, rising US debt and potential rate of interest cuts are making a macroeconomic surroundings that would additional strengthen Bitcoin’s attraction as a “must-have” asset.

Nonetheless, a brand new pro-crypto authorities is a vital catalyst to additional enhance crypto costs.

Deciding on good investments

Whereas optimism is widespread, Hougan cautioned in opposition to a one-size-fits-all method to crypto investing. He emphasised that regardless of a extra supportive surroundings, most initiatives will battle to thrive and should falter because the sector matures.

Hougan added that the regulatory reset will present a degree enjoying subject for initiatives to succeed or fail on their deserves. He suggested buyers to take a disciplined method to tell apart promising initiatives from these which may be underperforming.

However, the Bitwise CIO stated the outlook is now brighter than ever for the early adopters who invested in crypto amid uncertainty.

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