Donald Trump, the 45th President of the United States is already settled in the Oval office and he has begun implementing some policy changes. However, Wall Street is still somewhat immune to the expected negative effects of a change in the leadership of the American government. Many analysts submitted that Trump’s victory at the polls would cause equities to crash but U.S. stocks have gone on to record new highs.
Market bears also held out hope that the U.S. equities markets will crash once Trump takes the oath of office. However, U.S. stocks have maintained the bullish rally and the Dow Jones is actually staying on course to 20,000. Interestingly, Trump’s victory has a direct influence on the price of Bitcoin because Bitcoin is an alternative currency that provides investors with a safe haven in times of volatility in the economy and in the financial markets. This post seeks to explore how Bitcoin is likely to fare under President Trump.
Bitcoin to shine brighter under president Trump
Donald Trump’s actions, inactions, and words have a huge influence on the global economy and Bitcoin is not likely to be spared from that influence. Nonetheless, it is becoming increasingly obvious that the Trump factor could provide bullish tailwinds for the Bitcoin investment community.
To start with, Bitcoin was the only asset that recorded marked gains on the heels of Trump’s victory in the 2016 U.S. the presidential elections. After Trump won the election, Bitcoin recorded the biggest gain among all financial instruments from under $700 to more than $736 within a couple of hours. In contrast, U.S. stocks recorded a flash decline before they recovered after investors started warming up to the idea of President Trump.
Of course, realists will be quick to point out the fact that Bitcoin recorded those gains because of an increase in market fears that Trump’s victory will trigger a fresh bout of uncertainty in the global economic and financial landscapes. However, the fact remains that Trump is one of the most controversial public figures in recent times and his position as the president of the United States will amplify the volatility and uncertainty caused by the controversies surrounding his presidency and his policies.
Trump might become sympathetic to Bitcoin
The second reason Bitcoin investors might enjoy bullish tailwinds under President Trump is that Trump might turn out to become sympathetic to Bitcoin. Trump already has Bitcoin supporters such as Mick Mulvaney and Peter Thiel in his team.
For instance, Mick Mulvaney openly supports Bitcoin, Blockchain technology, and the development of cryptocurrency. Mulvaney is tapped as the Director of the Office of Management and Budget in Trump’s administration. Peter Thiel is another outspoken Bitcoin supporter and he has investments in a number of Bitcoin startups. Hence, we can reasonably expect that these men who has the president’s ears could ‘lobby’ for policies that provide an enabling environment for Bitcoin to thrive.