The Trump Effect: How the New Era is Transforming the Crypto Landscape
New York Magazine2 days ago
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The Trump Effect: How the New Era is Transforming the Crypto Landscape

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Summary:

  • Bitcoin has surpassed $87,000 as banks urge investments.

  • Bernstein calls for Wall Street to 'Buy everything you can'.

  • Donald Trump's election signals a new era for the crypto market.

  • Self-regulation and lobbying efforts are reshaping the industry.

  • The total crypto market approaches $3 trillion.

The Bitcoin Boom

Bitcoin has surpassed $87,000, with banks advising Wall Street to invest in every cryptocurrency available. The days of Sam Bankman-Fried are about to seem minor compared to the imminent influx of capital into the crypto space.

Trump and Bitcoin Photo: Jon Cherry/Getty Images

Wall Street's Bold Call

On Monday, the research firm Bernstein urged its Wall Street clients to “Buy everything you can” in crypto, marking a significant shift in investment sentiment. Bitcoin was testing new highs above $82,000, and by the end of the day, it had exceeded $88,000, potentially marking the largest trading day in crypto history.

Entering the Trump Era

With Donald Trump’s recent election victory, the crypto industry is poised for a transformative period. Unlike previous eras, this time there's an expectation of institutional growth fueled by a favorable economic environment, including lower taxes and interest rates.

The Rise of Self-Regulation

The crypto sector is expected to self-regulate aggressively, driven by substantial lobbying efforts. Major players like Brian Armstrong, CEO of Coinbase, have successfully backed candidates who support a crypto-friendly agenda, leading to significant political wins.

Changing Regulatory Landscape

The Trump administration's approach could shift dramatically, with crypto advocates gaining influence. Notably, Cynthia Lummis has introduced a bill for the U.S. Treasury to hold a strategic reserve of 1 million bitcoins for two decades, aligning with El Salvador's previous attempts at integrating bitcoin.

Market Dynamics

The crypto market is nearing $3 trillion, with only Monero among the top cryptocurrencies experiencing losses. The buzz around crypto is palpable, and as investment continues to flow in, the market's volatility is expected to stabilize.

Speculative Future

While skepticism remains about the sustainability of this growth, with fears of another FTX-like crash, the current enthusiasm among investors is undeniable. The crypto community is ready to capitalize on this new wave of interest, driven by the broader economic changes ahead.

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