Bitcoin has been rallying ever since Trump won the election. The digital currency has soared by more than 40% since the election concluded.
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Investors have high hopes about what a Trump presidency can do to crypto prices, but is the bubbling optimism justified? Here’s what the experts think.
How the Trump Presidency Can Impact Bitcoin Prices
Dan Simerman is an investor and technical product manager who is well versed in consumer psychology, digital assets and open source software development. He has built software for Fortune 50 financial institutions, multinational media companies and strategic consulting firms. He is also the Principal Advisor at Mintify and the Head of Financial Relations at the IOTA Foundation.
He laid out how Trump’s second term can affect crypto prices, and so far, it’s looking good for crypto.
“Trump personally seems very pro-Bitcoin and digital assets in general. He’s proposing National Bitcoin Strategic Research, a better dynamic between the SEC and the blockchain industry, and supposedly the first crypto-specific role in the White House.”
Trump’s stance toward Bitcoin can lead to favorable policies that make it easier to embrace the digital asset, Simerman explained.
“The most important aspect of Trump’s presidency will be that innovation can flourish in the industry without fear of legal or criminal action. There will be clearer guidelines for professionals and legal firms on navigating complex updates to America’s financial infrastructure. Overall, it will create less burden on builders, less money wasted on fighting legal battles, and more interest from innovators and institutions alike to adopt and accept these new technologies.”
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How High Can Bitcoin Go?
Simerman is optimistic about how high Bitcoin can go over the next four years, and his prediction should excite any crypto investor.
“Over a four year period, Bitcoin could easily hit 500k per token, possibly more if governments around the world see it as a strategic imperative to hold Bitcoin to compete with one another.”
President Trump proposed a Strategic Bitcoin Reserve in an effort to make the United States the “crypto capital of the planet,” according to Newsweek. He also said he wants to wipe out the national debt with crypto. Whether or not he achieves this objective, one thing is clear: the U.S. government will have to buy a lot of Bitcoin and other cryptocurrencies to achieve that goal. The U.S. government’s involvement should create significant price action, and lead to other countries building up their crypto reserves.
Other Catalysts To Monitor
Simerman suggested investors look at additional catalysts that can lead to meaningful crypto appreciation for patient investors.
“The adoption of stablecoin startups and technologies is a major catalyst, as that signals an increase in options to bring liquidity to blockchain systems and networks,” Simerman siad. “I would also look for institutional adoption this year, as this seems to be the first major cycle where companies are willing to work ‘directly on-chain’ as opposed to building their own private blockchain solutions that could not interact with Solana or Ethereum.”
He also emphasizes Bitcoin’s importance in crypto markets. If Bitcoin performs well, it can bring up all of the other cryptos with it. Simerman highlighted how technological advances in Bitcoin can make this scenario more likely.
“Bitcoin is the biggest catalyst in this cycle,” he explained. “Bitcoin’s scaling and ‘programmability’ — meaning that you may one day be able to run applications on Bitcoin similar to how you can run them on Ethereum today — will be a major catalyst for the industry. Many prefer the network over competitors, and the ability to grow the economy of the largest network by enabling tokenization and smart contracts will create a massive opportunity zone.”
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This article originally appeared on GOBankingRates.com: How High Will Crypto Go With Trump as President? Here Is What Experts Think
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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