Cryptocurrency companies to be biggest beneficiaries if Trump secures 2nd term
Date
7/23/2024 2:29:26 AM
(MENAFN) A news agency recently reported that cryptocurrency companies stand to be the biggest beneficiaries if former President Donald Trump secures a second term in office. These companies, particularly those dealing with Bitcoin, have faced significant challenges in their attempts to go public in the United States. However, under a potential second Trump presidency, these digital asset firms could see substantial gains. The report also highlighted that foreign cryptocurrency companies might suffer losses in market share, making them the biggest losers in this scenario.
Christian Catalini, founder of the Cryptoeconomics Lab at MIT, commented on the situation, stating that "almost everyone in the cryptocurrency business in the US will be a winner if they are willing to play by the new rules when they are implemented." This suggests that the regulatory environment under Trump's leadership could favor domestic cryptocurrency enterprises, provided they adapt to the forthcoming regulations. Such a shift could create a more favorable business climate for these companies, enabling them to thrive.
The report further indicated a notable market reaction to recent political events, specifically pointing out that Bitcoin's value has surged by approximately 10% since President Biden's poor performance in a debate last June and an unsuccessful assassination attempt on the Republican candidate. This increase in Bitcoin's value is seen as a clear indicator of the market's positive outlook on Trump's growing chances of winning the presidency. Investors seem to be responding to the potential for a more favorable regulatory environment for cryptocurrencies under Trump's administration.
In addition to Bitcoin's rise, shares of Marathon Digital and Riot Platforms, the largest publicly traded cryptocurrency companies, have also seen significant gains. Their stocks have risen by about 30% during the same period, reflecting investor optimism about the future of the cryptocurrency market under a Trump presidency. These developments underscore the significant impact that political events and potential policy changes can have on the financial markets, particularly in the rapidly evolving world of digital assets.
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