American politics have a significant impact on cryptocurrencies, especially Bitcoin. During Donald Trump’s first term (2017-2021), he was skeptical of cryptocurrencies, considering them not to be “real money” and highly volatile ¹. However, recently, Trump has been more open-minded towards Bitcoin, which can be attributed to its growing institutional adoption, rising market capitalization, and evolving regulatory framework ¹.
Trump’s election could influence the Bitcoin market in several ways, including more flexible regulation, tax incentives for mining, and integration of blockchain technologies into government projects ¹. On the other hand, there are also potential risks, such as increased regulatory scrutiny, restrictions on mining, and competition with government digital currencies ¹.
