Bitcoin and other cryptocurrencies hit their peak four years ago. Later, Bitcoin fell as low as $29,000, and there were notable drops in altcoins as well. However, four years later, Bitcoin hit yet another record high following Trump’s re-election. Observing this pattern is very interesting.
Currently while writing this article Bitcoin was trading around 97,717 Dollars.
It is still unclear, whether the Trump administration would change current policies for crypto or go with the current policies.
The theory appears to be optimistic. Trump has demonstrated good relationships with Elon Musk, a well-known proponent of cryptocurrency. As a cryptocurrency enthusiast, Musk was instrumental in Dogecoin’s rise to its all-time high. It is feasible that Dogecoin might even hit $1 while Trump is in office.
Trump is likely to focus on strengthening the US dollar, and this optimistic economic outlook may help the cryptocurrency market. However, the taxation of cryptocurrency profits remains a concern. High taxes on cryptocurrency income may prompt many investors and cryptocurrency enthusiasts to relocate to countries like Dubai, where taxes on cryptocurrency are either nonexistent or very low.
It’s reasonable to predict that Trump will prioritize the American economy. When the U.S. economy grows, more people will likely invest in crypto and the stock market. After the pandemic, many governments provided financial support to citizens to keep their economies stable. During this time, we saw retail investors turn to crypto and stocks in an attempt to achieve financial gains.
The power of communities like Reddit shouldn’t be underestimated. Reddit had a significant impact on Wall Street when GameStop stock reached an all-time high. Similarly, AMC, a struggling stock, brought unexpected fortunes to many retail investors. These examples show that collective actions can influence markets, including crypto.
Based on these observations, it’s possible to conclude that the economy under Trump’s leadership might improve. If the economy does well, we could see positive growth in the crypto and stock markets, as they often follow the overall economic trend.
