- Donald Trump has demonstrated his support for this emerging asset class by accepting campaign contributions in various cryptocurrencies.
- Bernstein analysts predict crypto could become the primary “Trump Trade” in the current election cycle as Republican prospects improve.
Former President Trump’s stance on ending the perceived “war on crypto” has resonated with those dissatisfied with current regulatory policies. He has demonstrated his support for this emerging asset class by accepting campaign contributions in various cryptocurrencies.
Contrary to the Biden administration, Trump’s endorsement of cryptocurrency as a pivotal element of future economic policy highlights his vision for American financial leadership, per the Crypto News Flash report. He declared:
We will ensure that the future of crypto and the future of Bitcoin will be made in America; otherwise, other countries are going to have it.
Recent data from the prediction market Polymarket reflect this sentiment, with Trump’s odds of winning at 59% compared to President Joe Biden’s 34%. These figures indicate significant confidence in Trump’s potential victory despite current polls showing a tighter race within statistical margins of error.
An analysis by Fortune Magazine notes that prediction markets like Polymarket often serve as high-signal indicators of public sentiment. These markets incorporate participants’ financial stakes, potentially more accurately reflecting voter intentions than traditional polling methods.
Former President Donald Trump has been actively contacting the crypto community to sway crypto voters who are unhappy with the Biden administration’s hostile approach. In one such significant move, Trump is likely to speak at the Bitcoin Convention 2024 in Nashville next month, reported Crypto News Flash.
Trump Trade 2.0 Will Involve Crypto, Says Bernstein
According to Bernstein analysts, crypto could become the primary “Trump Trade” in the current election cycle as Republican prospects improve and the party’s leader increasingly embraces a pro-crypto stance.
Gautam Chhugani and Mahika Sapra wrote in a report on Monday that Republicans view a favorable position on the crypto industry as a strategy to attract voters and secure campaign funding from super PACs that support pro-crypto politicians.
The original “Trump Trade” referred to the surge in US stocks, Treasury yields, and the dollar following Donald Trump’s victory in the 2016 presidential election. According to the report, a Trump victory this time could lead to a crypto rally fueled by institutional adoption and an improved regulatory environment. The Bernstein analysts noted:
The Republican side sees crypto not just as a vote bank but also a meaningful source of funding. If the election sentiment shifts more Republican, crypto would end up as the primary ‘Trump trade’ and hopes of a favorable regulatory regime would change the ‘use-case’ narrative around blockchains.
Amid his pro-crypto stand, President Trump has been receiving large donations from the crypto community. According to the CNF update, Gemini exchange founders Tyler and Cameron Winklevoss had donated $1 million each to support Trump.
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