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Cryptocurrency Could Emerge as the Latest Trade Trend Favored by Trump Supporters

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'Crypto May Become The New Trump Trade'

Crypto is poised to become the prominent “Trump Trade” in this electoral period, with indicators pointing to a strengthened Republican position and the party’s leading figure adopting a pro-cryptocurrency stance, suggest Bernstein analysts.

The GOP views a supportive crypto policy as a dual strategy to attract voters and to secure campaign contributions from super PACs that are aligned with cryptocurrency-friendly legislators, as noted by Gautam Chhugani and Mahika Sapra in their Monday report.


Coined after Trump’s 2016 win, which sparked rallies in US equities, yields, and the dollar, the term “Trump Trade” could be redefined with a predicted cryptocurrency boom driven by institutional engagement and a more favorable regulatory framework, should Trump be victorious.

As per the analysts, Republicans regard the crypto space not just as a means to garner votes, but also as a significant source of campaign funds. A shift in election dynamics toward the Republicans could position crypto as the key “Trump Trade,” altering market expectations around blockchain’s practical uses.

Trump recently engaged with Bitcoin mining company executives at Mar-a-Lago, giving his endorsement to the crypto industry. He proclaimed that he would support crypto mining operations were he to assume the presidency once more.

In a follow-up, Trump stated on his Truth Social platform his desire to have all future Bitcoin production be “MADE IN THE USA!!!”.

However, despite these pro-cryptocurrency signals, a report from TD Cowen cautions that Trump could potentially reverse his stance and return to his initial skepticism if he wins the election.

The Cowen report predicts that Trump’s comments on cryptocurrency during the upcoming first presidential debate for 2024 will be indicative of the direction his administration might take regarding regulation.

It is anticipated that “If [Trump] signals anything less than full endorsement, it could trigger worries that he might revert to his earlier skeptical approach if he gets re-elected,” the report elucidates.

It’s also mentioned that President Joe Biden might utilize the Thursday debate to recalibrate his stance on cryptocurrency.

The SEC has faced criticism from crypto proponents under Biden’s leadership for its vigorous pursuit of crypto trading platforms they allege are dealing in unregistered securities. Yet, sentiments are changing, as evidenced by the SEC’s approval of Bitcoin and Ether exchange-traded funds earlier this year.

The acceptance of Bitcoin ETFs has fostered institutional acceptance of the top cryptocurrency, contributing to a nearly 37% increase in its value this year, while Ether has risen nearly 40%, despite its ETFs not being available in the market as yet.

The Cowen report urges a conservative approach to the candidates’ promises on crypto: “While words are significant, we believe it’s an error to assume that either candidate will follow through on their verbal commitments.”

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