After Trump was elected, the Crypto Assets market welcomed new opportunities

Recently, with Trump winning the US election, the global Crypto Assets market is full of expectations for the future policy environment. The industry generally believes that the new government's rise will bring new development opportunities for the encryption industry, which may not only alleviate regulatory pressure but also provide a more open policy space. The Republican Party's consistent pro-business stance, along with the new government's team’s free market ideology, has led investors and industry leaders to hold an optimistic attitude towards the change in the US's Crypto Assets regulatory stance, which is expected to inject new momentum into the industry. Under this expectation, the price of Bitcoin rapidly climbed to $76400, setting a new historical high.

So, how will Trump's election affect the Crypto Assets market? This article will analyze from multiple perspectives including regulatory trends, Bitcoin prospects, institutional investor expectations, market volatility, and DeFi development, and will synthesize the views of various professionals.

The shift in the regulatory environment and new policy directions

At the policy level, Trump's victory has brought new hope to the Crypto Assets market.

A report by a certain analysis team pointed out that the new government's assumption of office may accelerate the replacement of senior personnel at the U.S. Securities and Exchange Commission (SEC), with the prospect of bringing in a new chairman who is friendly to Crypto Assets. The Republican Party's support for decentralized finance (DeFi), stablecoins, and other areas may promote the passage of related legislation. These potential policy reforms will help legitimize the Crypto market and provide clearer guidance for the industry.

The Chief Legal Officer of a trading platform expects that under the leadership of the new chairman, the SEC's handling of encryption cases will undergo "significant changes." He believes the new government will re-examine existing crypto asset cases, distinguishing clear scams and fraudulent activities from normal business.

The CEO of the trading platform expressed optimism about the prospects, believing that a Republican-controlled Congress is "the most supportive Congress for Crypto Assets in history," which is extremely beneficial for the industry's compliance and security. The new government's policy reforms will not only inject confidence into the market but also accelerate the legalization process for stablecoin issuers in the United States.

In addition, sources have revealed that the "Financial Innovation and Technology Act of the 21st Century" (FIT21), passed earlier this year, may be shelved due to Trump's victory. As Crypto Assets lobbying groups shift towards supporting more favorable legislation, the new regulatory environment may become more lenient, providing good development space for the market.

Bitcoin reserves and market prospects

The positive impact of Trump's election quickly reflected in the Bitcoin price. During the election period, Bitcoin once broke through $75,000, setting a new historical high.

A certain analysis institution predicts that the price of Bitcoin may further rise to $90,000 in the future and is expected to reach $200,000 by 2025. This expectation has been widely recognized by market analysts, especially for institutional investors, the value attribute of Bitcoin as "digital gold" is increasingly being emphasized.

An industry insider pointed out that Trump's election could bring a "180-degree turn" to the Web3 industry, and believes that Bitcoin's market performance has not fully reflected the far-reaching impact of this policy change. Institutions' allocation to Bitcoin is expected to significantly increase, making it one of the mainstream financial assets, and this trend may accelerate further in the coming years.

Market Volatility and Trading Opportunities

Analysts hold a positive attitude towards market volatility.

A certain portfolio manager believes that Trump's victory will bring short-term market volatility, which presents new opportunities for traders. These fluctuations mainly stem from changes in market expectations regarding whether Trump will fulfill his encryption-friendly commitments. As policy inclinations gradually become clearer, market volatility may prompt investors to reassess their investment strategies in the Crypto Assets market, leading to new trading opportunities.

Institutional investors' attitudes and market inflows

With the new government policy shifting towards a more friendly approach to the Crypto Assets market, institutional investors' interest in this market is also increasing.

A director of a research institution stated that the new government's policy shift will bring a new wave of capital inflow to digital assets such as Bitcoin, especially among institutional investors. Although the crypto market has attracted approximately $29 billion in inflows this year, he believes that there is still tremendous potential for growth. With the improvement of the regulatory environment and policy support, the interest of institutional investors will further increase. Market participants generally expect that as the crypto market becomes legalized, digital assets will be more widely accepted in the coming years and further integrated into the traditional financial system.

Analysts from a trading platform expect that after Trump is elected, the crypto market will welcome a "new wave of hope." With the industry anticipating a more favorable stance from federal agencies towards Crypto Assets, this trend is expected to promote more capital inflow into the Web3 space. The analysts stated: "We expect that in the short term, a large amount of capital will be released for the crypto field."

The rise of the DeFi sector and market vitality

Trump's victory may also promote the native sector of the Crypto Assets industry, especially the rise of DeFi. The DeFi project launched by the Trump family before the campaign, although still in the pre-sale stage, indicates their emphasis on the Crypto Assets native sector.

A founder of a certain DeFi project stated on social media that Trump's victory will drive a "true and sustained revival" of DeFi, significantly increasing the likelihood of a tenfold growth in the number of users in the DeFi space. He pointed out that DeFi is more likely to benefit from the reduction of regulatory uncertainty in the U.S. compared to other areas of the crypto assets industry, as its decentralized nature aligns more closely with the free market principles supported by the Republican Party.