In the wake of Donald Trump‘s triumph in the U.S. presidential election, Binance CEO Richard Teng has voiced his positive outlook for the future of the cryptocurrency sector in America.
What Happened: Teng interprets Trump’s victory as a "golden era" for the crypto industry, predicting the arrival of new U.S. regulators who are open to digital currencies, reported the Financial Times. The crypto sector, previously under strain from the preceding Democrat administration, now anticipates a substantial policy shift in Washington.
In the previous year, Binance faced a substantial $4.3 billion penalty for violations of anti-money laundering and sanctions, and its former head was incarcerated. The industry viewed the election as a pivotal moment to alter attitudes in Washington, which they believed were suppressing innovation and pushing businesses out of the U.S.
Post-election, Bitcoin BTC/USD experienced a nearly 10% surge, reaching a record high of over $76,000. On Thursday, a record $1.4 billion was invested into U.S. bitcoin exchange-traded funds, such as Grayscale Bitcoin Trust GBTC and iShares Bitcoin Trust ETF IBIT, which directly invest in the cryptocurrency, according to Bloomberg data.
Investors are optimistic that the Trump administration will establish an agenda that attracts major U.S. institutions that have so far remained uninvolved. Shervin Pishevar, a venture capitalist with close ties to Trump and Elon Musk, expressed that the US “is now on the verge of sensible crypto policy.”
Trump’s victory is perceived as “an unbelievably important day for the cryptocurrency industry,” in the words of Mike Novogratz, the billionaire founder of the crypto group Galaxy. The industry also anticipates a policy shift at the Securities and Exchange Commission, where chair Gary Gensler has initiated a comprehensive offensive.
The crypto industry’s ultimate goal is a policy shift at the Securities and Exchange Commission, where chair Gary Gensler has initiated a comprehensive offensive. The industry hopes for a halt on pending cases and a rectification of the perceived injustices of the previous leadership.
Why It Matters: The crypto industry’s optimism following Trump’s win is in line with recent predictions of a bullish cycle in the crypto market. Analysts have pointed to favorable macroeconomic conditions and the potential for more crypto-friendly legislation under the Republican administration as key drivers of this anticipated growth.
Additionally, the expected shift in regulatory policies is seen as a significant factor in the predicted strong performance of Bitcoin and gold under the Trump presidency. These assets are viewed as reliable stores of value in scenarios of currency devaluation, which could result from inflationary or expansionary fiscal policies.
Furthermore, the industry’s optimism is reflected in the projected price surge of Bitcoin to $80,000 this month. Industry experts anticipate that a more favorable regulatory climate under the Trump administration could drive further growth in the crypto market.
Price Action: Bitcoin is trading at $77,310, marking a 13.52% increase over the past week, according to data from Benzinga Pro. BTC surpassed the $77,000 threshold for the first time.
Image Via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
