The ‘Trump Factor’: How Donald Trump’s Crypto-Friendly Stance is Boosting Bitcoin

As the 2024 presidential election approaches, the cryptocurrency market is abuzz with excitement. And it’s all thanks to Donald Trump, who has surprisingly emerged as a crypto-friendly candidate. In a recent note to clients, Bernstein analysts asserted that the ‘Trump factor’ is a positive catalyst for the world’s largest cryptocurrency, bitcoin.

Trump and JD Vance: A Crypto-Friendly Ticket

Trump’s selection of crypto-friendly Ohio Sen. JD Vance as his running mate has further stoked bitcoin investors’ optimism about the prospect of the self-proclaimed ‘crypto president’ Trump. Despite Trump’s prior criticism of bitcoin, calling it a ‘scam,’ his recent flip-flop on crypto has won over many in the cryptocurrency community.

The Crypto Market’s Love for Trump

According to Bernstein analysts led by Gautam Chhugani, the crypto market interprets a scenario of a Trump win as more positive for crypto. In fact, bitcoin’s price is positively correlated with the probability of a Trump presidency. Since Saturday’s failed attempt on Trump’s life, which boosted his probability of prevailing in November’s presidential election, bitcoin has surged almost 10% to nearly $65,000.

Bitcoin’s Price Surge: A Direct Result of Trump’s Crypto-Friendly Stance?

Trump’s Shift on Crypto

Before this election cycle, Trump was a vocal critic of bitcoin and promoted further regulation. However, he soon flipped on crypto, selling millions of dollars worth of his own branded non-fungible tokens (NFTs) beginning in 2022. His campaign also began accepting crypto donations, bringing in $1.8 million worth of bitcoin contributions during 2024’s second quarter.

Trump’s Branded NFTs: A Profitable Venture

A Contrarian View

Despite the crypto market’s apparent support for a presidential regime change, there have been several big wins for bitcoin under Biden. Since Election Day 2020, bitcoin is up almost 400%, jumping from about under $14,000 to almost $64,000. Most crucially, Biden-appointed financial regulators approved the first-ever spot bitcoin exchange-traded funds in January, prompting billions of dollars of institutional investment into bitcoin.

Bitcoin’s 400% Surge Under Biden: A Testament to Regulatory Wins

In conclusion, Trump’s crypto-friendly stance has undoubtedly boosted bitcoin’s price and investor sentiment. As the election approaches, it remains to be seen how Trump’s ‘crypto factor’ will continue to shape the cryptocurrency market.