1. Tax cuts may allow more people to 'have money to invest'
More money for businesses and individuals: If Trump pushes for more tax cuts, companies and individuals will pay less tax and have more money to spend. At this time, some people may throw extra money into high-risk assets like Bitcoin and Ethereum, making the market more lively.
Lower trading tax on cryptocurrencies: If the money made from buying and selling cryptocurrencies (for example, making 100,000 and paying 20,000 in taxes, leaving 15,000) becomes more favorable, more people may be willing to trade frequently instead of holding on and waiting for a price drop.
Rules become clearer: If the government clearly states 'how mining income is taxed' and 'whether DeFi interest counts as income', everyone will have a better understanding, and large institutions may be more willing to enter the market.
2. The government may be too 'lazy to manage' cryptocurrencies
Less fuss, more innovation: If Trump allows the SEC (the department regulating securities) to create fewer troubles for the crypto industry, sectors like decentralized finance (DeFi) and exchanges may develop faster, and the prices of Bitcoin and Ethereum may be pushed higher.
Suppressing 'official digital currency': Trump opposes the US creating its own digital currency (similar to digital dollars), believing it threatens freedom. If the official digital currency fails, Bitcoin, which is unregulated, may become more popular.
3. More money printed, Bitcoin may become a 'safe box'
The government borrows money and cuts taxes, which may lead to inflation: tax cuts will make the government more short of money, and if they print money crazily to fill the gap, money will become less valuable. At this time, something like Bitcoin, which has a fixed supply, may be seen as an 'anti-inflation artifact', and more people will buy it.
Dollar fluctuations: short-term tax cuts may strengthen the dollar, but in the long run, it may weaken due to excessive government debt. Regardless of how the dollar fluctuates, Bitcoin, as a globally accepted asset, may be seen as a safe haven.
4. Trump 'promotes' and retail investors follow suit
Trump personally endorses: This old guy has issued NFTs before and recently said 'supports cryptocurrencies'. If he campaigns with the slogan 'Make crypto great again', market sentiment may spike directly.
Is traditional finance too exploitative? Switching to crypto: If tax reform benefits Wall Street (big banks and funds) more, ordinary people may feel exploited and turn to invest in cryptocurrencies, feeling that it is fairer here.
5. But don’t celebrate too early, there are pitfalls to watch out for!
Policies may be 'wishful thinking': Tax cuts need Congressional approval, and if the two parties fight and it doesn't pass, the market may be left disappointed.
The US loosens up, other countries tighten: for example, Europe is strictly regulating cryptocurrencies. If the US eases up while Europe tightens, large institutions may find themselves in a dilemma, and the market will still experience significant fluctuations.
Summary:
Short-term may rise: tax cuts + less regulation + Trump boasting can drive both capital and sentiment in the market.
Long-term view on inflation: If the government cuts taxes and ends up with a huge debt, ultimately printing money recklessly, cryptocurrencies like Bitcoin that are 'anti-inflation assets' may become more valuable, but if the economy collapses, everyone will suffer.
What should ordinary people do?: Don't go all in! You can hold some Bitcoin as a protective charm, but before policies are implemented, price fluctuations can be fierce, so beware of being trapped.
