Donald Trump’s decisive victory within the presidential election last week has sent shockwaves through financial markets because the so-called “Trump trade” ignited around the globe. The dollar gained essentially the most in years, bonds slumped, the stock market surged and gold dipped.
After which there’s Bitcoin, whose price soared past $90,000 this week, with its market cap of $1.5 trillion exceeding that of all but the biggest corporations on this planet.
Benjamin Graham, the daddy of value investing, once said that markets are voting machines within the short run and weighing machines in the long term. It appears investors are voting with their feet and their dollars, sending a big selection of assets higher.
But it would take many months — if not years — to weigh the true impact of a Trump presidency on the numerous industries and asset classes that so rapidly responded to his re-election.
And while you possibly can’t prove a counterfactual, it’s unlikely that markets would have reacted in quite the identical positive way had Harris been elected.
The largest winner of the Trump trade has been a giant winner is Web3, the blockchain-enabled web, and assets like Bitcoin, Ethereum, and Solana.
Web3 advocates and investors have high hopes for what a Trump administration might bring and so they’re plowing record amounts of cash into these assets.
On Nov. 7, investors put $1.4 billion into Bitcoin ETFs followed by one other $1.1 billion on Nov. 11.
Interestingly, Biden’s election win in 2020 also precipitated a rally in Bitcoin, with the value soaring 149% from Nov. 5, 2020, until inauguration day the next January.
On the time, there was optimism that the brand new administration would offer a fresh start for the crypto industry. As of Nov. 14, Bitcoin is up 33% since Trump’s re-election.
It appears that after again animal spirits have been unleashed. Consider Dogecoin (DOGE), a memecoin — or digital asset based on some irreverent web culture — that has climbed greater than 70% in only every week, and now has an even bigger market value than the Ford Motor Company.
Why is the industry so hopeful? First, they argue that nothing is healthier than the Biden administration, which was openly hostile to the web3 industry.
Second, a Trump presidency is viewed as more business-friendly, leaving the market to innovate unmolested.
Third, there’s much the federal government can do to actively encourage innovation and investment by setting clear rules of the road; there’s hope now that the crypto industry will finally achieve regulatory clarity under a Trump presidency.
Brandon Potts, a partner at Framework Ventures, a web3 enterprise capital firm, said recently how “every thing we have now done up to now has been operated in a gray area because it pertains to crypto in the USA.”
What he means is today there’s uncertainty over the very nature of cryptoassets: Are they securities, commodities, or something else entirely?
Many big corporations are anxious about innovating on this space for fear of inadvertently hitting an SEC tripwire which could haunt them for years to come back.
Regulatory clarity would encourage American founders to remain in America, kick-start enterprise adoption, and drive institutional investment.
Bitcoin has surged, and lots of the corporations that operate within the space like Coinbase and Hut8 have fared well, which is smart when you assume markets are actually pricing in a shift from government regulation as a headwind to government support as a tailwind.
Memecoins have outperformed, with Dogecoin (DOGE), Pepe (PEPE), dogwifhat (WIF), and Shiba Inu (SHIB) beating Bitcoin handily.
Dogecoin got an added boost when Trump announced the creation of the Department of Government Efficiency (a k a DOGE), to be co-headed by former presidential candidate Vivek Ramaswamy and Elon Musk, who’s been a giant Dogecoin booster.
Google search results for DOGE surged by greater than 700% within the wake of the Trump announcement, and the cryptocurrency community celebrated this as a win.
Trump’s rise to becoming the talisman of the crypto industry, and naming government departments after web memecoins, was unlikely until recently. Back in 2020, during his first turn within the White House, Trump reportedly desired to ban Bitcoin.
How things have modified this yr.
Trump’s crypto conversion could have begun earlier, however it was crystalized on the Bitcoin 2024 conference in Nashville, hosted by the industry leader BTC INC. on July 27 of this yr.
Robert F. Kennedy, Cantor Fitzgerald Chairman, and Trump transition boss Howard Lutnick, in addition to US Senators Cynthia Lummis, Bill Hagerty, and Marsha Blackburn rounded out the lineup.
In his speech to a standing-room-only crowd, Trump extolled the virtues of crypto, said he would make the USA the “crypto capital of the planet” and announced the creation of a strategic Bitcoin reserve.
He said that upon assuming office he would dismiss Gary Gensler, the SEC chairman who’s unpopular with the industry. “We can have regulations, but any more the foundations can be written by individuals who love your industry, not hate your industry,” he added.
Trump calculated that by offering his support to the crypto industry, he could lure potential donors and motivate crypto-focused voters to swing his way by showing he would protect their businesses, livelihood, and investment portfolios.
This election cycle, the crypto industry spent $160 million on campaign financing, making it certainly one of the most important contributors.
But this wasn’t just wealthy donors throwing their financial weight around. Many citizens clearly cared deeply about this issue. Based on a recent Coinbase survey, 25% of millennials and Gen-Z own crypto, and nearly two million have signed a pledge to support pro-crypto candidates.
Trump spotted a disaffected group who felt alienated by the establishment and owned the problem. By the point Harris prolonged her own olive branch, making crypto an oddly positioned cornerstone of her appeal to black men in late October, it felt like too little too late to alter many minds.
Crypto donors didn’t just influence the presidential election. Additionally they targeted congressional races.
The web site Standwithcrypto.org shows just how much this strategy has paid off. In 2024, voters elected 257 pro-crypto candidates to the home, compared with 115 anti-crypto candidates, and added 16 pro-crypto senators, to 12 anti-crypto senators.
Crucially, within the eyes of industry insiders, Ohio senator and anti-crypto crusader Sherrod Brown was defeated by Republican Bernie Moreno who has courted the crypto vote. As Potts said, “The clear message is that crypto won.”
So, what can we expect from the brand new administration? Trump will likely clean house at most federal agencies, including the Securities and Exchange Commission, where he has vowed to switch the present chairperson.
Under recent leadership, advocates hope, more crypto-asset exchange-traded funds (ETFs) may very well be approved and more crypto-native businesses may very well be permitted to go public on US exchanges.
This may bring additional retail and institutional investors into the crypto markets and supply access to growth capital for the industry’s leading businesses.
Under the brand new administration, the SEC could very-well drop its suits against Coinbase alleging the corporate is working a brokerage exchange and not using a license. This may then set a precedent for other corporations who need to enter the US market.
Clear rules of the road could bring banks and other traditional players into the crypto arena, accelerating the expansion of stablecoins (cryptocurrencies pegged to other, more traditional assets) and other financial applications.
Trump may even establish a strategic Bitcoin reserve, some hope, and abolish taxes on many small-dollar crypto asset transactions, making it easier to make use of these assets for on a regular basis transactions.
To be certain, there’s much the federal government can do to speed up and enable innovation. And far of this relies on Trump and his pro-crypto allies in Congress and industry specializing in the hard issues and doing the work of getting laws drafted and passed.
Those that have worked closely with Trump have said how he’s notoriously mercurial – easily swayed on many issues. Will he stay taken with web3 and appoint individuals who can enact this agenda?
The recent appointment of Musk and Ramaswamy, each crypto adherents, to go up DOGE should encourage many. Between now and Jan. 21, the industry will get lots more evidence somehow. For a decade or more, web3 has operated in a gray area. Now could be the time for it to step into the sunshine.
Alex Tapscott is the creator of “Web3: Charting the Web’s Next Economic and Cultural Frontier” and managing director of the Digital Asset Group, a division of Ninepoint Partners LP
Donald Trump’s decisive victory within the presidential election last week has sent shockwaves through financial markets because the so-called “Trump trade” ignited around the globe. The dollar gained essentially the most in years, bonds slumped, the stock market surged and gold dipped.
After which there’s Bitcoin, whose price soared past $90,000 this week, with its market cap of $1.5 trillion exceeding that of all but the biggest corporations on this planet.
Benjamin Graham, the daddy of value investing, once said that markets are voting machines within the short run and weighing machines in the long term. It appears investors are voting with their feet and their dollars, sending a big selection of assets higher.
But it would take many months — if not years — to weigh the true impact of a Trump presidency on the numerous industries and asset classes that so rapidly responded to his re-election.
And while you possibly can’t prove a counterfactual, it’s unlikely that markets would have reacted in quite the identical positive way had Harris been elected.
The largest winner of the Trump trade has been a giant winner is Web3, the blockchain-enabled web, and assets like Bitcoin, Ethereum, and Solana.
Web3 advocates and investors have high hopes for what a Trump administration might bring and so they’re plowing record amounts of cash into these assets.
On Nov. 7, investors put $1.4 billion into Bitcoin ETFs followed by one other $1.1 billion on Nov. 11.
Interestingly, Biden’s election win in 2020 also precipitated a rally in Bitcoin, with the value soaring 149% from Nov. 5, 2020, until inauguration day the next January.
On the time, there was optimism that the brand new administration would offer a fresh start for the crypto industry. As of Nov. 14, Bitcoin is up 33% since Trump’s re-election.
It appears that after again animal spirits have been unleashed. Consider Dogecoin (DOGE), a memecoin — or digital asset based on some irreverent web culture — that has climbed greater than 70% in only every week, and now has an even bigger market value than the Ford Motor Company.
Why is the industry so hopeful? First, they argue that nothing is healthier than the Biden administration, which was openly hostile to the web3 industry.
Second, a Trump presidency is viewed as more business-friendly, leaving the market to innovate unmolested.
Third, there’s much the federal government can do to actively encourage innovation and investment by setting clear rules of the road; there’s hope now that the crypto industry will finally achieve regulatory clarity under a Trump presidency.
Brandon Potts, a partner at Framework Ventures, a web3 enterprise capital firm, said recently how “every thing we have now done up to now has been operated in a gray area because it pertains to crypto in the USA.”
What he means is today there’s uncertainty over the very nature of cryptoassets: Are they securities, commodities, or something else entirely?
Many big corporations are anxious about innovating on this space for fear of inadvertently hitting an SEC tripwire which could haunt them for years to come back.
Regulatory clarity would encourage American founders to remain in America, kick-start enterprise adoption, and drive institutional investment.
Bitcoin has surged, and lots of the corporations that operate within the space like Coinbase and Hut8 have fared well, which is smart when you assume markets are actually pricing in a shift from government regulation as a headwind to government support as a tailwind.
Memecoins have outperformed, with Dogecoin (DOGE), Pepe (PEPE), dogwifhat (WIF), and Shiba Inu (SHIB) beating Bitcoin handily.
Dogecoin got an added boost when Trump announced the creation of the Department of Government Efficiency (a k a DOGE), to be co-headed by former presidential candidate Vivek Ramaswamy and Elon Musk, who’s been a giant Dogecoin booster.
Google search results for DOGE surged by greater than 700% within the wake of the Trump announcement, and the cryptocurrency community celebrated this as a win.
Trump’s rise to becoming the talisman of the crypto industry, and naming government departments after web memecoins, was unlikely until recently. Back in 2020, during his first turn within the White House, Trump reportedly desired to ban Bitcoin.
How things have modified this yr.
Trump’s crypto conversion could have begun earlier, however it was crystalized on the Bitcoin 2024 conference in Nashville, hosted by the industry leader BTC INC. on July 27 of this yr.
Robert F. Kennedy, Cantor Fitzgerald Chairman, and Trump transition boss Howard Lutnick, in addition to US Senators Cynthia Lummis, Bill Hagerty, and Marsha Blackburn rounded out the lineup.
In his speech to a standing-room-only crowd, Trump extolled the virtues of crypto, said he would make the USA the “crypto capital of the planet” and announced the creation of a strategic Bitcoin reserve.
He said that upon assuming office he would dismiss Gary Gensler, the SEC chairman who’s unpopular with the industry. “We can have regulations, but any more the foundations can be written by individuals who love your industry, not hate your industry,” he added.
Trump calculated that by offering his support to the crypto industry, he could lure potential donors and motivate crypto-focused voters to swing his way by showing he would protect their businesses, livelihood, and investment portfolios.
This election cycle, the crypto industry spent $160 million on campaign financing, making it certainly one of the most important contributors.
But this wasn’t just wealthy donors throwing their financial weight around. Many citizens clearly cared deeply about this issue. Based on a recent Coinbase survey, 25% of millennials and Gen-Z own crypto, and nearly two million have signed a pledge to support pro-crypto candidates.
Trump spotted a disaffected group who felt alienated by the establishment and owned the problem. By the point Harris prolonged her own olive branch, making crypto an oddly positioned cornerstone of her appeal to black men in late October, it felt like too little too late to alter many minds.
Crypto donors didn’t just influence the presidential election. Additionally they targeted congressional races.
The web site Standwithcrypto.org shows just how much this strategy has paid off. In 2024, voters elected 257 pro-crypto candidates to the home, compared with 115 anti-crypto candidates, and added 16 pro-crypto senators, to 12 anti-crypto senators.
Crucially, within the eyes of industry insiders, Ohio senator and anti-crypto crusader Sherrod Brown was defeated by Republican Bernie Moreno who has courted the crypto vote. As Potts said, “The clear message is that crypto won.”
So, what can we expect from the brand new administration? Trump will likely clean house at most federal agencies, including the Securities and Exchange Commission, where he has vowed to switch the present chairperson.
Under recent leadership, advocates hope, more crypto-asset exchange-traded funds (ETFs) may very well be approved and more crypto-native businesses may very well be permitted to go public on US exchanges.
This may bring additional retail and institutional investors into the crypto markets and supply access to growth capital for the industry’s leading businesses.
Under the brand new administration, the SEC could very-well drop its suits against Coinbase alleging the corporate is working a brokerage exchange and not using a license. This may then set a precedent for other corporations who need to enter the US market.
Clear rules of the road could bring banks and other traditional players into the crypto arena, accelerating the expansion of stablecoins (cryptocurrencies pegged to other, more traditional assets) and other financial applications.
Trump may even establish a strategic Bitcoin reserve, some hope, and abolish taxes on many small-dollar crypto asset transactions, making it easier to make use of these assets for on a regular basis transactions.
To be certain, there’s much the federal government can do to speed up and enable innovation. And far of this relies on Trump and his pro-crypto allies in Congress and industry specializing in the hard issues and doing the work of getting laws drafted and passed.
Those that have worked closely with Trump have said how he’s notoriously mercurial – easily swayed on many issues. Will he stay taken with web3 and appoint individuals who can enact this agenda?
The recent appointment of Musk and Ramaswamy, each crypto adherents, to go up DOGE should encourage many. Between now and Jan. 21, the industry will get lots more evidence somehow. For a decade or more, web3 has operated in a gray area. Now could be the time for it to step into the sunshine.
Alex Tapscott is the creator of “Web3: Charting the Web’s Next Economic and Cultural Frontier” and managing director of the Digital Asset Group, a division of Ninepoint Partners LP
