Bitfinex analysts anticipate a “new wave of hope” entering crypto markets following Donald Trump’s election as president of the United States.
This renewed hope is expected to translate into more capital flowing into the Web3 space as the industry expects federal agencies to adopt a less hostile stance on cryptocurrencies. According to Bitfinex analysts:
“We expect that in the short term, a significant amount of capital will now be unlocked for crypto ventures. In addition, there is likely to be an impact on the approach that has been taken by the SEC, which many believe to have been hostile to the crypto industry.”
Trump’s support for the crypto industry is a new development. During his first term at the White House, Trump went on record on X as an opponent, saying he was not a fan of Bitcoin BTC
$74,781 and deeming cryptocurrencies speculative.
Trump’s recent shift in stance on cryptocurrencies, coupled with two years of intense regulatory scrutiny by US authorities, has attracted backing from high-profile figures in the Web3 and tech industries.
While campaigning, he made several promises to crypto voters, including support for Bitcoin miners, the creation of a strategic Bitcoin reserve and a crypto advisory council. Trump has also vowed to fire the Securities and Exchange Commission chairman, Gary Gensler, on day one of his new administration.
Most of these promises will require congressional support to become a reality. On the policy front, Bitfinex analysts do not anticipate any short-term changes:
“We do not expect any action in the short-term, particularly as multiple complex issues need to be resolved, including whether certain crypto assets should be classified as a security.”
As of Nov. 6, the Associated Press had called 181 seats for Democrats and 199 for Republicans in the House, with the results of 55 races yet to be announced. Although the Republicans also gained control of the Senate, whichever party controls the House will significantly impact the chamber’s legislative agenda for oversight and passing bills.
