After Trump's victory, the cryptocurrency industry is expected to receive policy support, driving the market into a "golden age," with the U.S. likely to solidify its position as a global crypto hub.

Author: @SpartanBlack_1

Translation: Blockchain in Plain Language

Trump achieved a resounding victory in this U.S. presidential election, with the Republican Party also winning the Senate and likely taking control of the House of Representatives. Such an overwhelming victory will empower the Republican Party to push for multiple reforms. Significant changes are expected in the cryptocurrency sector, and we believe the next 12 months will be favorable for crypto assets.

There has already been much discussion regarding the impact of this significant event on cryptocurrencies:

1) Gary Gensler will step down, likely to be replaced by someone more supportive of cryptocurrencies. This means that existing enforcement actions will be withdrawn, and the SEC will adopt a more cooperative approach. This will reduce the legal risks for many existing projects and founders that launched tokens since 2017;

2) We will see the most pro-crypto Congress, which is likely to facilitate a regulatory framework favorable to innovation. This will make it easier for new projects to raise funds and attract more institutional capital into the market;

3) The idea of a U.S. strategic Bitcoin reserve has been proposed. If this plan comes to fruition, the selling pressure on Bitcoin will no longer be an issue, and the market may even begin to speculate whether the U.S. government will become a net buyer of Bitcoin. Considering that even Microstrategy's purchasing behavior can drive up Bitcoin prices, imagine the impact if the U.S. government holds a strategic Bitcoin reserve;

4) World Liberty Finance will be launched. Imagine if such a plan is driven or associated with the U.S. president; what would it mean for DeFi (decentralized finance). Whether they raise $300 million or $30 million, the significance of this project for DeFi builders and innovators far exceeds its financing scale.

Each of the above events, when viewed individually, is sufficient to significantly boost the crypto market. Their combined effect will have a profound impact on the crypto industry, which the market has not yet fully reflected. This is why the media refers to this period as the "crypto golden age."

Some may question whether Trump will implement these plans. In my opinion, the likelihood is high. Trump does not play by the rules, and this election victory has given him significant leverage. Additionally, Trump has two advisors deeply involved in the crypto space—Elon Musk and JD Vance. Coupled with a more crypto-friendly Congress, advancing these plans should not be difficult.

Aside from the above points, another discussion that is less talked about but equally important is that Trump has expressed his desire to make the U.S. the global capital of cryptocurrency. Currently, the U.S. is already the center of global Web3 innovation, with many important infrastructure projects and large decentralized applications (dApps) originating from the U.S. At the same time, the U.S. has some of the largest trading platforms, brokers, and the biggest Web3 venture capital pools in the world. Thanks to China's exit, the U.S. now accounts for about 40% of global Bitcoin mining capacity (up from 17% in 2021), becoming the largest center for Bitcoin mining globally. Most cryptocurrency transactions are also denominated in U.S. dollars. Therefore, in many ways, the U.S. is already the center of global cryptocurrency. If the U.S. government intends to solidify its dominant position, what does this mean for other governments, especially major financial centers like London, Tokyo, Dubai, and Hong Kong? More importantly, after missing the wave of Web2 innovation, can Europe afford to miss another opportunity for Web3 innovation?

Finally, returning to price performance. Historical data shows that regardless of who wins the U.S. presidential election, the 12 months following the election are typically a strong period for crypto prices, regardless of interest rate trends:

November 2012 - November 2013 (Obama, stable rates): +2326%

• November 2016 - November 2017 (Trump, rising rates): +896%

• November 2020 - November 2021 (Biden, stable rates): +351%

  The reasons for this are varied, possibly due to the policy clarity brought by the election results, optimism about the new government, or the effects of Bitcoin halving/crypto cycles, likely a combination of these factors. In the periods following the last two elections, altcoins (represented by ETH) typically achieved about three times the returns of Bitcoin.

  The uniqueness of the 2024 election lies in the clear presence of a crypto agenda, with the winning president and his core advisors all supporting cryptocurrencies. The U.S. Congress is now composed of a large number of pro-crypto senators. Although economists expect Trump's policies may bring inflationary pressures, the market still anticipates that interest rates will trend downward in the next 12 months. If history serves as a reference, the market outlook for the next 12 months should be very optimistic.

  Article link: https://www.hellobtc.com/kp/du/11/5523.html

  Source: https://x.com/SpartanBlack_1/status/1854842315384496253

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