From initially rejecting Bitcoin [BTC] to becoming a staunch advocate of cryptocurrencies in the 2024 election campaign, the 47th President of the United States has embraced a new identity as the "cryptocurrency president".
Throughout his campaign, he promised to create a "strategic national Bitcoin reserve" and criticized the Biden administration's hardline stance on cryptocurrencies.
He even introduced his own cryptocurrency project, signaling a profound shift in his stance on digital assets.
In fact, at a recent conference, Trump also pointed out:
"If we don't embrace cryptocurrency technology and Bitcoin, China will, other countries will, they'll dominate and we can't let that happen".
Bitcoin market capitalization after the election
After the 2024 election, BTC soared past the $90,000 mark, surpassing the previous All-Time-High of $73,000 set in March.
As a result, the total value of all cryptocurrencies has increased by more than $650 billion, with a similar increase of $3.2 trillion.
This surge is largely attributed to the optimism surrounding the new administration. Cryptocurrency enthusiasts are now hoping for a more favorable stance towards digital assets, compared to the Biden administration's approach.
What benefits could the Republican 'power grab' bring to the cryptocurrency market capitalization?
Amid the growing speculation, investment bank Standard Chartered has predicted that the cumulative cryptocurrency market capitalization could reach $10 trillion by the end of 2026 – This could happen when the Republican Party wins and may introduce policies supportive of cryptocurrencies.
In fact, according to a recent report, the bank forecasts that government support actions could drive the market value to quadruple – to over $10 trillion in the coming years.
Commenting on a similar note, Geoff Kendrick, Head of Research for Digital Assets at Standard Chartered, noted:
"The rising tide will lift all digital asset boats; the most sensitive assets will benefit the most".
The report also suggests that while creating a Bitcoin reserve fund under the new administration is unlikely, it could have significant impacts if it were to occur.
Particularly, as it could lead to a "low-probability, high-impact event".
Therefore, Kendrick was most accurate when he said:
"With the potential for a Republican landslide in the U.S. election, we believe we are entering the cryptocurrency summer".
In summary, if Bitcoin reaches this level, its total value could even surpass $4.3 trillion – far exceeding the entire money supply of the British pound.
