Bernstein analysts predict that if Donald Trump emerges victorious in the US presidential election later this year, the cryptocurrency market could see a significant upswing.
In their report, the analysts suggest that the Trump administration could create a more favorable regulatory environment for crypto, which could attract more institutional investment in the sector.
They point out that the Republican Party views crypto not only as a key demographic for voters, but also as a significant source of funding.
The analysts suggest that if the Republican Party’s outlook improves, cryptocurrencies could become a focal point for investors who expect supportive regulations, thereby increasing the perceived value and use cases for blockchain technology.
Trump is clearly supportive of the crypto industry, distinguishing his position from that of President Joe Biden. This marks a change from his earlier opinion, in which he described digital currencies as extremely risky.
Despite the change in the former US president’s views, some experts remain cautious. A recent report by investment bank TD Cowen recommended that politicians’ promises regarding cryptocurrencies should be taken with scepticism.
According to Santiment’s latest narrative dashboard, the start of July has seen a surge in online discussions around a wide range of crypto themes, with Solana ETFs, stablecoins, Virtuals, Robinhood, and AI bot projects like Yapyo & Kaito leading the spike in mentions across platforms.
The likelihood of the United States entering a recession in 2025 has dropped significantly, according to the latest market data from prediction platform Polymarket, where recession odds have fallen to just 22%, marking a notable decline from earlier highs in April and May.
A recent poll reveals that over 70% of U.S. crypto investors support President Donald Trump’s current approach to digital asset policy, reflecting growing optimism within the sector.
U.S. President Donald Trump has officially signed his sweeping policy bill into law, enacting one of the most consequential pieces of legislation of his presidency.