Shares of New York-based cryptocurrency firms jumped Monday after Republican presidential candidate Donald Trump talked up bitcoin and promised friendlier regulation for the industry.
The former president, speaking at the 2024 Bitcoin Conference in Nashville, Tenn. over the weekend — vowed the “United States will be the crypto capital of the planet and the bitcoin superpower of the world” if he is re-elected to the White House
Crypto exchange Coinbase shares jumped 3.7% on Monday, while crypto miners including Bitfarms, Riot Platforms and CleanSpark all leapt between 3.4% and 4.5%.
Bitcoin jumped as much as 2.4% to its highest since mid-June before giving up the gains later in the day. The token was worth $68,142.70 in midday trading.
“Any ‘Trump trade’ into U.S election should include greater allocation to bitcoin and bitcoin-linked stocks,” Bernstein analysts wrote in a note.
Crypto has rapidly moved from the fringes of the financial world to the mainstream, helped by institutional investors’ backing and the approval of exchange-traded funds tied to spot price of bitcoin and ether.
“The sentiment globally has been incredibly positive this year … This is all setting the scene for what many believe is the next bull run for 2024-25,” said CoinCorner CEO Danny Scott.
The Republican nominee promised to relax industry regulations – countering President Joe Biden, who has been criticized for his administration’s strict oversight.
Trump laid out his plan for the industry, which includes firing SEC Chairman Gary Gensler, collecting a “stockpile” of US crypto and creating a Bitcoin advisory council.
Gensler has defended Biden’s cautious approach to the crypto industry in the past.
In March, Gensler said “the whole field is rife with abuses and fraud.”
He has cited crypto’s volatility as a risk.
“For three and a half years, the current administration has waged a war on crypto and Bitcoin like nobody’s ever seen before,” Trump said.
“If Bitcoin is going to the Moon — as we say — it’s going to the Moon, I want America to be the nation that leads the way,” he said, insisting crypto’s value could surpass gold under his leadership.
Trump shared his plans to form a strategic Bitcoin reserve using the crypto the government currently holds, which was seized through law enforcement actions.
The presidential nominee previously said he wanted all remaining crypto to be mined in the US.
This is not the first time a possible Trump win has sparked excitement among crypto investors.
Bitcoin shares surged to a two-week high after an assassination attempt left Trump bleeding from the ear during a Pennsylvania rally. Some investors believed the shooting helped Trump’s chances at a win.
After the rally shooting, Bitcoin jumped 8.6% to $62,508 – pushing its year-to-date gains to 47%.
Blockchain Ether also soared 6.8% at $3,322.
Though now widely considered the crypto-nominee, Trump was skeptical of the industry during his time in the White House.
“We have only one real currency in the USA, and it is stronger than ever. It is called the United States Dollar!” he said in 2019.
Trump has since flip-flopped his stance. In May, his campaign began accepting donations in crypto.
His running mate, Sen. JD Vance, has supported pro-crypto legislation and holds a stake in Bitcoin.
Meanwhile, Vice President Kamala Harris’ views on crypto are unclear.
While the likely Democratic nominee served under Biden – who was heavy on regulations – she is reportedly playing catch up on industry expertise.
Businessman and “Shark Tank” star Mark Cuban said her campaign has reached out to him to learn more about crypto.
With Post wires
