Regulation
Trump election victory would be a ‘major catalyst’ for the rise of cryptocurrencies, investment expert says
Pratik KalaHead of Research at an Investment Management Provider DigitalX Limited predicts a Trump victory in the next election but cautions against expecting immediate cryptocurrency-friendly regulations.
What happened: According to to Kala, president Biden failed to achieve the crucial goal of appearing “lively and energetic” during the debate, a factor that he said made it “clear that Trump is going to win.”
Despite the potential for a Trump presidency, Kala suggests that Cryptocurrency Regulation it may not be an immediate priority.
He points out that the total market capitalization of cryptocurrencies is still relatively small compared to that of large companies, and that a CEO’s time is usually devoted to “big swings.”
Kala predicts that market participants could “get ahead” of the potential for crypto-friendly policies under a Trump administration. Investors are hoping for favorable regulations, changes in SEC leadership, and the promotion of a pro-crypto SEC chair.
These changes could potentially enable compliant token listings and increased value for token holders.
Kala predicts that incumbent cryptocurrencies with large market shares and consistent revenue streams are likely to benefit the most from this scenario.
He also suggests that high fully diluted valuation (FDV) coins may need to reconsider their tokenomics to remain competitive.
Read also : Why Bitcoin Could Drop to $55,000: 10x Research
Why is this important?:Looking at the bigger picture in the economy, Kala notes that a Trump presidency could lead to an end to ongoing wars, potential rate cuts and the reallocation of funds currently parked in money market funds.
These factors could be a “major catalyst” for significant growth in the cryptocurrency market cap, with Kala giving a “50% chance” of reaching the oft-discussed $10 trillion market cap during a Trump presidency.
Kala, however, highlights potential risks, including the possibility of a resurgence of inflation due to Trump’s economic policies. He warns that if inflation leads to a significant increase in the cost of living, it could lead to serious economic and social problems.
In conclusion, while a Trump victory could serve as a catalyst for cryptocurrency prices, Kala advises against expecting immediate regulatory changes.
He suggests it may take up to 12 months after the election before significant political changes occur.
As the cryptocurrency landscape continues to evolve in response to political and economic factors, industry participants are closely monitoring these developments.
For those looking for deeper insights into the interplay between politics, economics, and digital assets, Benzinga’s upcoming The Future of Digital Assets The November 19 event promises to be a valuable forum.
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