- Crypto Trump Trade is expected to return as Republicans adopt a pro-crypto stance to attract voters and funding.
- Donald Trump has pledged to advocate for Bitcoin mining and criticized democratic regulatory efforts if re-elected.
Cryptocurrency may become the primary “Trump Trade” in the current election cycle as Republican prospects improve and their leading candidate, former President Donald Trump, according to Bernstein analysis.
Crypto Trump Trade May Repeat If Former President Is Reelected
Gautam Chhugani and Mahika Sapra, in their Monday report, highlighted that Republicans view a favorable position on the crypto industry as a dual advantage: attracting voters and securing campaign funds from super PACs that back pro-crypto politicians.
The term “Trump Trade” originated from the post-2016 election surge in the U.S. stocks, Treasury yields, and the dollar after Trump’s victory.
Analysts predict a similar crypto Trump Trade will be repeated if the Republican party candidate wins again, driven by institutional adoption and a more favorable regulatory environment.
“The Republican side sees crypto not just as a vote bank but also a meaningful source of funding,” the analyst noted.
They added sentiment that a shift in election towards the Republicans could bring back crypto Trump Trade and change the blockchain narrative with hopes for a supportive regulatory regime.
Trump Shows Enthusiasm for Crypto
Earlier this month, Trump expressed strong support for Bitcoin mining during a meeting with several miners at his Mar-a-Lago resort.
He assured participants that he would advocate for Bitcoin mining if he returned to the White House. Trump also criticized Democrats’ regulatory attempts, positioning himself as a crypto advocate.
In May, Trump’s campaign launched a fundraising page allowing cryptocurrency donations through Coinbase Commerce, complying with Federal Election Commission regulations.
This move enables supporters to contribute to his presidential campaign using digital currencies.
The Winklevoss twins, prominent Bitcoin investors, donated $1 million each to Trump, but the contributions were refunded as they exceeded the legal limit for individual donations to election candidates.
