Donald Trump has repeatedly mentioned cryptocurrencies in his election campaign, promising to create a more loyal and transparent regulatory system for digital assets in the US. The politician has talked about the possible formation of a national crypto reserve in BTC and emphasised the need to implement looser regulations for the digital asset industry to encourage innovation and growth.

Trump also deservedly criticised the current regulatory methods, calling them overly harsh and one that scares entrepreneurs away from the jurisdiction and forces them to relocate to other countries, thus causing problems for the local economy. That’s why his victory triggered a huge flood of optimism in the market.

Newly elected US President Donald Trump in a Pubkey bar

A special mention should be made of Trump’s promise to fire Gary Gensler, chairman of the Securities Commission, who has been actively fighting the coin industry for the past three years.

However, he will likely resign himself closer to The Donald’s inauguration, something other SEC heads have previously done.

When the bullrun in cryptocurrencies begins

In an interview with Cointelegraph reporters, Ryan Chou, co-founder and CEO of the Solv Protocol platform, labelled Trump’s victory as “the beginning of a new bullrun.” Here’s his rejoinder on the matter.

Bitcoin reaching a new all-time high is one of the best advertisements for cryptocurrencies.

Last night, BTC took the $77,000 level for the first time in history. The cryptocurrency's historic high on the Binance exchange is $77,199.

15-minute chart of the Bitcoin BTC exchange rate on the Binance exchange

During previous bullruns, individual investors played an important role, but in this cycle they did not reach the market in full beforehand. Institutional investors, i.e. professional investors with a lot of capital, took the lead here. This became particularly relevant after the US Securities and Exchange Commission (SEC) approved spot Bitcoin-ETFs in January.

Another sign of a shift in the activity of different categories of market players is the drop in Coinbase’s fee income, as announced in the platform’s third-quarter financial statement. The figure totalled $1.13 billion, down from the projected $1.26 billion.

The management of the exchange argued the decrease in the indicator “softer market conditions”, as the decline in activity of individual investors turned out to be the main reason for the difference with the forecasted value of income. This negatively affected the value of Coinbase shares.

Changes in Coinbase’s share price

Also in October, the number of searches about Bitcoin on Google hit a yearly low. The sharp jump in the graph of this metric only appeared after the final confirmation of Donald Trump’s election victory.

The frequency of searches about Bitcoin on Google immediately after the election took place

In general, ordinary investors come to crypto en masse near the end of bullish trends. They are motivated by headlines about Bitcoin’s steady rise in value, which is more true just towards the end of the bullrun.

😈 MORE INTERESTING STUFF FROM US AT YANDEX.ZEN!

Signs of this sort of thing are already being seen. In particular, IntoTheBlock analysts note a sharp increase in the number of short-term Bitcoin holders who purchased the cryptocurrency only the day before.

Experts emphasise that such a trend is typical of bullruns, when investors buy more and more coins as it grows.

The rise of short-term Bitcoin BTC holders

Donald Trump’s new presidential term will last until 2028, which is more than enough time to integrate proper regulation of cryptocurrencies and ensure that the region is attractive to blockchain developers.

In general, Trump could start this process with a personnel reshuffle – namely, changing the person in the position of the head of the SEC. At least, that’s what Fintopio CEO Steve Milton thinks. Here’s his rejoinder.

Trump’s presidential campaign could lead to the SEC becoming more lenient on cryptocurrencies. This would lead to a change in the regulatory environment in the US.

The current head of the SEC, Gary Gensler, would need to be fired and another candidate with a more loyal attitude towards cryptocurrencies would need to be appointed in his place. Experts have several potential candidates, but it is also possible that Trump could bring a new person from his inner circle to the SEC.

SEC head Gary Gensler

The Trump administration is also in a position to loosen overall government oversight of the crypto industry and investors, Milton notes.

Trump has been very vocal about the need to roll back US government interference in people’s lives. He has been in favour of cryptocurrencies.

According to Anastasia Plotnikova, CEO and co-founder of Fideum, Trump’s victory was a “historic achievement” for the crypto industry in the US.

It paves the way for harmonised regulation of cryptocurrencies that will drive innovation, increase competition and encourage the return of talent. The US crypto industry has been working for years to make this happen, and I look forward to seeing something like this come to fruition.

Former US President Donald Trump on Edin Ross’s streaming service

With Donald Trump in power, a more favourable regulatory environment for cryptocurrencies is expected, making digital assets a more popular tool for investors and everyday people. For example, this week, Detroit authorities announced the possibility of paying taxes with digital assets next year. Because of this, coins will clearly not be viewed negatively.

Look for more interesting stuff in our chat room. Be sure to look forward to seeing you there to share the continuation and finale of this bullrun together.

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