Author: 636Marx
Today, supporters of Trump submitted a DeFi protocol to Aave, deploying the Trump family's digital currency project World Liberty Financial (WLF) on the Aave platform. According to the proposal, WLF will provide 20% of the fees generated on the platform and 7% of the total WLF supply to the token holders of the regulated protocol. Aave will participate in WLF governance and liquidity mining.
As the 2024 US presidential election approaches, various forces are closely watching this election. If Trump wins, he may propel the digital currency market to unprecedented heights - BTC may reach $100,000 by the end of the year, and is expected to rise even further shortly after. Several key factors support this optimistic outlook, please continue to follow the author's footsteps to learn more.
The Evolution of Trump's Stance on Digital Currencies
Trump's views on digital currencies have been constantly changing, which is transformative for BTC supporters. Trump was once an outspoken critic, but his attitude towards regulation and innovation has shifted, especially during his 2024 campaign. His current platform suggests repealing federal regulations, particularly "Regulation 2.0" crypto regulations, and replacing SEC Chairman Gary Gensler, who is widely seen as an opponent of the crypto industry. This regulatory reform will create a more favorable environment for BTC, triggering increased institutional interest and investor confidence.
If Trump is re-elected, his policies may accelerate the growth of the digital currency market. Standard Chartered Bank predicts that the BTC price will reach $100,000 by the end of 2024, and may climb to $150,000 in early 2025. This surge will mark a significant leap for BTC from its current trading range of around $60,000.
Catalysts for a BTC Rebound Under Trump
Several factors may drive a significant increase in BTC during Trump's presidential term:
1. Supportive regulatory environment for digital currencies: Trump's proposal to abolish restrictive digital currency regulations may remove a major obstacle for institutional investors. A more lenient regulatory environment may attract large investors, boosting market demand and BTC prices.
2. Macroeconomic factors: The financial environment after the election is expected to be favorable for BTC. ETF institutions have stated that US Treasury yields may steepen again, making BTC more attractive compared to traditional investments like bonds. Optimism is also held for the inflow of funds into BTC ETFs, which typically thrive in such conditions.
3. Political support for digital assets: The Trump administration may continue to mainstream BTC and other digital assets, as evidenced by the crypto-friendly policies he proposed in his 2024 campaign. His statements include supporting federal BTC holdings, echoing the practices of companies like MicroStrategy that hold large BTC reserves.
4. Market sentiment: BTC prices often fluctuate with market sentiment, and when major political figures support digital currencies, market sentiment tends to soar. Trump's positioning as the "Crypto President" may generate optimistic market sentiment, attracting more retail and institutional investors.
The Role of Institutional Investors
In recent years, companies like MicroStrategy, BlackRock, and Grayscale have significantly increased their BTC holdings, and a more favorable US regulatory framework may encourage more companies to follow suit. If Trump's policies ease the regulatory burden, large companies may allocate more assets to BTC, driving up demand and prices.
Furthermore, the growing number of BTC ETFs, such as BlackRock's ETF, provide institutional investors with a way to enter the market without directly holding the asset. Trump's victory may increase the flow of funds into these ETFs, further driving up BTC prices.
Author's Perspective, a Potential Watershed Moment
Standard Chartered Bank predicts that by the end of 2025, the BTC price may reach $200,000, regardless of who is president. This bullish outlook is based on the assumption that as BTC becomes further integrated into the global financial system, its price will continue to rise due to demand exceeding its limited supply. Trump's successful campaign is one of the catalysts for BTC to break through the six-figure mark.
Trump's policies after being elected may create a more favorable digital currency environment, leading to increased institutional investment, improved market sentiment, and enhanced regulatory transparency. However, BTC supporters should always remember that the current behavior of BTC has deviated from Satoshi Nakamoto's invention of a non-inflationary currency, and as a highly volatile financial product without constraints, it can depreciate very quickly in times of macroeconomic uncertainty.
