The re-election of Donald Trump as U.S president has already made a significant impact on Bitcoin and the wider cryptocurrency landscape, however the best could still be yet to come.
Trump’s re-election for a second term as President of the United States coincided with Bitcoin’s dramatic surge to a new all-time high, climbing to a valuation of $93,434 on Nov. 13. Many altcoins also experienced major price gains, while cryptocurrency stocks and Bitcoin ETF volume soared.
Now that the cryptosphere has the support of a sitting U.S president for the first time, what can we expect to see in the coming months as Donald Trump’s influence makes itself felt?
Bitcoin to $100K and Beyond?
With Bitcoin hitting an ATH of $93,434 just two days ago, market participants are hoping to see BTC cross the $100,000 mark before the year ends.
Investor confidence has been boosted by the emergence of a crypto-friendly administration for the first time in Bitcoin’s history, and some analysts have even forecasted a potential surge far beyond $100k.
Matthew Siegel, Head of Digital Assets Research at global investment manager Van Eck, told CNBC that his firm expects the value of Bitcoin to reach $180,000 by the time Donald Trump’s inauguration takes place early next year.
“We think it’s just getting started. We’re now in blue sky territory; no technical resistance, and we think we’re likely to make repeated all-time highs over the next two quarters, Siegel told CNBC on Thursday.
“This is a state change in terms of government support. Look at this cabinet: the VP, Attorney General, Director of Defense, National Security Advisor, possibly even the Secretary of Treasury being pro-Bitcoin,” Siegel explained, highlighting the array of crypto-friendly cabinet members set to begin their roles under the Trump presidency.
Meanwhile, some analysts have forecasted that the Trump-fuelled Bitcoin surge could see the valuation of the foremost digital asset reach as high as $500,000.
Policy Proposals and Regulatory Outlook
Among Trump’s campaign promises were pledges to create a strategic U.S Bitcoin reserve and to position the U.S as a global leader of the cryptocurrency industry.
Buoyed by Trump’s support, some U.S states have already taken their own initiative in creating a Bitcoin reserve.
On Thursday, lawmakers introduced the Pennsylvania Bitcoin Strategic Reserve Act, which would see up to 10% of its $7 billion state funding allocated to Bitcoin as a way to combat inflation, and to provide a diversification of investments beyond cash and bonds.
Meanwhile, Consensys CEO Joe Lubin told news outlets at DevCon 2024 in Thailand this week that he expects the Trump administration to halt the Securities and Exchange Commission’s (SEC) ongoing wars with various crypto firms.
Lubin predicted that Trump’s influence on the SEC would see many cases either dismissed, or quietly settled — a move that could save crypto firms hundreds of millions of dollars in lawsuit costs.
“So my guess is, in a way that is not embarrassing, they figure out ways to get the cases dismissed or settled, or something like that. Maybe not all the cases, maybe not all elements of the case, but I have a feeling that our industry is going to save hundreds of millions of dollars going forward.”
Trump is currently considering pro-crypto candidates for the top roles in the SEC and the Commodity Futures Trading Commission (CFTC) — both regulatory agencies which wield significant influence over the legal outlook regarding Bitcoin and the cryptocurrency industry.
Meanwhile, the pro-Bitcoin Matt Gaetz has ended his tenure in the House of Representatives and has been appointed by Trump to the role of Attorney General. Former U.S. Securities and Exchange Commission Chairman Jay Clayton has been appointed the lead federal prosecutor for the Southern District of New York.
Raise your hand if you think Matt Gaetz is the right man for the job as Attorney General!✋ pic.twitter.com/xPiGIPsYSB
— Trump Lover❤🇮🇳🇺🇸 (@SUBRATA30016572) November 14, 2024
Dogecoin (DOGE) Revival?
One of Trump’s first moves prior to his inauguration was to appoint Elon Musk and Vivek Ramaswamy to the newly formed “Department of Government Efficiency,” or DOGE, which will take aim at eliminating inefficiencies in government spending.
In response to a tweet by Vice President of Strategy RIsks, Melissa Chen, who pointed out the struggle broadcasters were facing in trying to figure out how to pronounce ‘DOGE’, Musk tweeted: “This is so awesome.”
In little over a week since Trump’s election win was announced, the value of Dogecoin (DOGE) has increased by 162%, rising from the $0.16 mark to over $0.42 — the highest Dogecoin has climbed since 2021. The DOGE price has since fallen back to $0.37.
Besides sharing its acronym with the newly formed government department, Dogecoin has been a longtime focus for Elon Musk, whose support of the memecoin has resulted in several market pumps in the past, including the surge which sent DOGE to its all-time high of $0.73 in 2021.
Musk was also the catalyst for DOGE price pumps when he mentioned the cryptocurrency during an appearance on Saturday Night Live, and when he declared that his electric car firm, Tesla, may soon accept payments in the form of Dogecoin.
With such high-profile individuals as Musk and Ramaswamy heading the DOGE department, we can expect to see Dogecoin in the news much more often in the coming months and years, and may result in Dogecoin exceeding its historic all-time high.
Impending Altcoin Season?
While Bitcoin’s surge to $93,434 also had a positive knock-on effect on the rest of the crypto market, most altcoins have yet to follow suit in achieving new all-time highs.
In fact, Ethereum recorded a new all-time low against the value of Bitcoin in the past 24 hours, and if historic patterns are to be repeated, this could be the sign that we are on the precipice of a serious ‘alt-season’.
This would see the gains made by Bitcoin holders plunged into the altcoin market, resulting in a slight dip in the value of Bitcoin, and potentially huge gains made by alts.
With Ethereum currently perched at a value of $3,071, it would only require a boost of 59% to see ETH surpass its historic all-time high of $4,891. Given the surging valuations of the likes of Bitcoin and Dogecoin in the past couple of weeks, such growth by Ethereum is not all that unlikely.
Final Take
Ultimately, the return of Donald Trump as U.S president looks set to be a significant shot in the arm for Bitcoin and the broader cryptocurrency industry.
With Bitcoin posting a new all-time high, and with a series of pro-crypto cabinet members either already appointed or under consideration, the outlook for the crypto industry has never been stronger.
Whether Bitcoin clears the $100k mark by the end of the year or not, we can expect to see major gains recorded across the board in the crypto market, particularly among the altcoin segment which looks primed to follow in Bitcoin’s footsteps.
Abimbola Adu
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