The highly anticipated presidential debate between Donald Trump and Joe Biden did not include any discussion about Bitcoin or cryptocurrency, which is noteworthy considering the amount of attention the industry has received this year.
However, experts believe that if Trump is reelected, it could signal more favorable regulatory conditions for the US cryptocurrency industry.
Is Trump the preferred candidate?
In a statement to CryptoPotato, analysts from Bitfinex emphasized Trump’s support for Bitcoin and other cryptocurrencies. They added that a Trump administration might focus on establishing a “clear and supportive” regulatory framework that promotes innovation and investment in the cryptocurrency industry.
This could lead to increased adoption of digital assets and stronger integration of cryptocurrencies with the financial system, potentially driving further growth in the industry.
Some industry participants have openly expressed support for Trump, including the Winklevoss twins, who recently donated $2 million worth of Bitcoin to Trump’s campaign to show their support. Recently, Kraken founder Jesse Powell announced a $1 million donation to the former president’s campaign.
Bitfinex analysts believe that this gesture “indicates that the cryptocurrency and traditional finance (TradFi) community increasingly sees Trump as a candidate who supports innovation.”
Trump has recently publicly supported Bitcoin and accepted cryptocurrency donations for his campaign, highlighting a shift in his stance from criticism during his presidency to a more favorable position towards digital assets. He has even referred to himself as the “Crypto President.”
According to the latest data, despite not mentioning cryptocurrency, Trump appears to be in a leading position after the recent debate.
“The Trump Trade”
Analysts at Bernstein believe that as Republican prospects improve and their standard-bearers increasingly support cryptocurrency, it could become a major “Trump Trade” in the current election cycle.
Republicans view a favorable stance towards the industry as a way to attract voters and secure campaign funding from Super PACs supporting cryptocurrency politicians.
The original “Trump Trade” referred to the simultaneous surge in the US stock market, Treasury yields, and the US dollar after Donald Trump’s victory in 2016.
“The Republican side sees cryptocurrency not only as a voting bank but also as a meaningful source of funding. If the election sentiment becomes more Republicanized, cryptocurrency will eventually become the main ‘Trump Trade,’ and the hope for favorable regulatory systems will change the narrative surrounding blockchain use cases.”
