Bitwise CIO sees a golden age for cryptocurrency starting with Trump’s victory.

By Crypto Gloom On Nov 6, 2024

Key Takeaways

Bitwise CIO predicts significant changes to cryptocurrency regulation and market dynamics following Trump’s major victory.
Despite the optimism, the Bitwise CIO warns that investor choices will be influenced by the success or failure of cryptocurrency projects.

Bitwise CIO Matt Hougan expects a dramatic shift in cryptocurrency regulation and market dynamics following Trump’s presidential election victory, predicting major policy changes within the first 100 days of a potential new administration.

Yes, that’s right. https://t.co/1MeP0ByGem

— Matt Hogan (@Matt_Hougan) November 6, 2024

“We are entering the golden age of cryptocurrencies,” the CIO said, noting that the industry has been operating with “an arm or two tied behind its back” due to SEC enforcement actions and regulatory uncertainty.

Aside from deregulation, the CIO highlights that cryptocurrencies were already in a bull market before the election.

The cryptocurrency market has been showing strong indicators this year, including $23 billion in net inflows into Bitcoin ETFs, the Bitcoin halving in April, increased institutional investment, and expanded real-world adoption in stablecoins, prediction markets, and gaming.

Another important factor highlighted by the CIO is the growing U.S. government debt. This debt has reached $36 trillion and continues to grow at a rate of $1 trillion every 100 days. He believes this trend will continue under the new administration.

While optimistic about the prospects for cryptocurrencies, Bitwise’s CIO warned investors about market selectivity.

“Yesterday’s election simply put cryptocurrencies on a level playing field. “There are both good and bad projects in cryptocurrency, projects that will succeed and projects that will fail at this level of the playing field,” he said.

Lastly, Bitwise CIO congratulated early adopters for championing cryptocurrency despite regulatory headwinds, acknowledging their role in leading the industry to this pivotal stage.