A specialist exchange-traded fund (ETF) provider has predicted the newly elected Trump administration in the United States will trigger a period where cryptocurrency will be looked upon in a favourable light.
Global X investment analyst Justin Lin cited the recent actions of Trump as a reason to believe the US is on the verge of what he calls a “pro-crypto era”.
“[A couple of weeks ago] Trump launched the ‘official Trump meme coin’ – a virtual token billed as a piece of history for speculative collectors. The coin, which offers no practical utility, became an overnight sensation, claiming the title of the world’s most traded cryptocurrency and reaching a liquid market cap of over $8 billion in just three days,” Lin acknowledged.
While recognising the inception of this coin was a spectacle, he pointed out it has significant implications for the cryptocurrency market in the immediate and medium-term time horizons.
“Trump’s personal foray into crypto signals a departure from the regulatory gridlock and scepticism that has long defined the US government’s approach to digital assets,” he explained.
“Furthermore, reports suggest that Trump is considering an executive order which positions crypto as a government priority, opening doors for industry leaders to have more influence in shaping policy.”
According to Lin, the crypto community is sensing a seismic shift and is enthusiastically welcoming Trump’s return to power.
“Bitcoin is revisiting all-time highs last hit in December 2024 and crypto industry leaders convened just blocks from the White House to celebrate Trump’s inauguration, hailing him as the ‘first crypto president’,” he said.
However, he did suggest the development would create issues for the digital assets that would need addressing, indicating the ethical and legal ambiguity of the Trump meme coin would likely attract increased regulator scrutiny.
“Moreover, whether a pro-crypto agenda can balance innovation with consumer protection remains an open debate,” he added.
“What is clear, however, is that Trump’s embrace of cryptocurrency has injected fresh momentum into an industry long hungry for political and institutional legitimacy.
“If the administration follows through on expectations, the US could well be on the cusp of a transformative shift in how it regulates and integrates digital currencies into the broader economy.”
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