Will Trump’s Return Fuel a Crypto Market Surge? Here’s What Experts Say

By Gloria Methri

As Donald Trump reclaims the Oval Office, a ripple effect is coursing through the cryptocurrency market, leading some to wonder if his presidency will be a boon for digital assets. With Bitcoin reaching record highs and a wave of optimism sweeping the crypto community, experts are weighing in on what this political shift means for the future of digital assets.

A Historic Surge in Crypto Prices

The 2024 U.S. election results have been followed by a historic rally in the crypto market. Bitcoin (BTC) has soared to a new all-time high of $76,000—a surge many attribute to Trump’s pro-crypto stance and expectations of regulatory support.

According to Dilip Chenoy, Chairperson of the Bharat Web3 Association, this moment marks a significant milestone. “As institutional confidence grows, we believe this price increase could pave the way for more balanced regulatory frameworks and mainstream acceptance,” Chenoy noted. He sees Trump’s return as a potential catalyst that could push the digital asset market toward broader stability and adoption.

Shivam Thakral, CEO of BuyUcoin, also attributes the price rally to Trump’s victory, calling it “a remarkable surge.” Thakral explained that the recent market performance, with Bitcoin at $76,000, Ethereum above $2,839, and Solana nearing $190, reflects investor optimism around a friendlier regulatory environment. This, he believes, may open new doors for decentralized finance (DeFi) assets, setting the stage for sustained growth. “The market is gaining momentum,” he added, “and investors are reacting positively, suggesting this surge could be a sign of more to come.”

Institutional Interest and Market Maturity

Trump’s re-election isn’t only drawing individual investors—it’s attracting the attention of major institutions as well. Anish Jain, founder of WadzChain, sees Bitcoin’s rally as a “pivotal moment” that underscores the growing trust in decentralized assets among institutional players.

“This milestone is not only indicative of Bitcoin’s resilience,” Jain noted, “but also highlights the deepening integration of cryptocurrencies into mainstream finance.” WadzChain’s vision, he added, is to foster a digital economy where blockchain drives transparency and inclusivity.

The sustained interest from institutions signals a maturing crypto market. Analysts suggest that Trump’s leadership could usher in an era where digital assets gain more recognition as a legitimate part of the financial ecosystem, with DeFi solutions bridging traditional and digital economies. Jain expressed optimism that the expanding adoption of crypto assets will empower both users and organizations, laying the groundwork for financial inclusivity and innovation.

Wall Street’s Bet on Bitcoin

Institutional moves in the wake of Trump’s win further reinforce the bullish sentiment. Ryan Lee, Chief Analyst at Bitget Research, explained that sidelined funds are now pouring into the market, driven by a mix of optimism and the fear of missing out. Lee noted that the futures market’s current long-to-short ratio suggests that Wall Street is taking long positions, indicating confidence in the market’s upward trajectory. “In the short term,” Lee said, “we’re likely to see BTC prices soar as more institutional funds enter the space.”

However, Lee also points out potential challenges. Trump’s policies could spark inflation, potentially keeping U.S. interest rates above 3.5% over the medium to long term. Yet, he believes that if the Republican-led Congress champions crypto-friendly regulations, these challenges could be offset by a supportive policy environment, which would ultimately benefit the industry.