Following Donald Trump’s victory in the 2024 election, the cryptocurrency market has seen a positive reaction with expectations of growth and potential support from the new administration. Many industry analysts expect that Trump’s victory could boost crypto-friendly regulations, which would help stimulate the market and give a boost to Bitcoin and other currencies’ prices. These expectations are based on Trump’s more open policy towards financial innovations, compared to the Democrats’ cautious stance towards cryptocurrencies.

Additionally, there is a belief that the Trump administration and Republicans may accelerate the passage of legislation such as the “Financial Innovation and Technology for the 21st Century” Act (FIT21), which seeks to more clearly regulate digital assets and divide regulatory responsibilities between bodies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Although Trump’s victory could create a positive environment for cryptocurrencies, analysts warn of significant market volatility, pointing to the possibility of rapid price changes.