If Donald Trump is re-elected as US President in 2025, the impact on public confidence in cryptocurrencies will likely be influenced by the following factors:
1. Economic Policies
Pro-Business, Anti-Regulation: If Trump continues his pro-business and deregulation approach from his previous term, this could have a positive impact on the market in general, including crypto. Investors may see growth opportunities in the sector.
Economic Uncertainty: Controversial economic policies or rising geopolitical tensions could drive investors to alternative assets such as cryptocurrencies as a hedge.
2. Approach to Crypto Regulation
Tighter Regulatory Approach: In his previous term, Trump criticized Bitcoin, calling it “based on thin air.” If a tighter regulatory approach is implemented, this could erode confidence in the crypto market.
Potential Support for Stablecoins: Trump may be more supportive of stablecoins or institutionally managed cryptocurrencies, such as central bank digital currencies (CBDCs), if they are deemed in the national interest.
3. Geopolitical Impact
Tensions with China: If Trump continues his tough stance on China, this could affect cryptocurrencies that have ties to Chinese blockchain companies or networks, such as TRON or NEO.
Relationship to Blockchain Technology: Using blockchain to support the United States’ digital infrastructure could increase the legitimacy of the technology.
4. Public and Media Sentiment
Trump’s sentiment toward cryptocurrencies will influence public opinion. If he supports the technology as an American innovation, the public may be more confident in investing. Conversely, criticism of cryptocurrencies could discourage traditional investors.
Potential Impacts:
Positive: Global uncertainty could make crypto more attractive as a safe-haven asset.
Negative: Tighter regulation or negative comments from Trump could discourage interest in digital assets