Recent reports from 10x Research have suggested that if President Joe Biden decides to withdraw from the 2024 presidential race, former President Donald Trump could potentially secure a “decisive victory” in the November election. The firm believes that no credible candidate currently stands a chance against Trump, essentially predicting that the election outcome has been predetermined. This shift in leadership could have significant implications not just for the political landscape but also for the crypto industry.
One key area that could see a shift is the leadership at the Securities and Exchange Commission (SEC). 10x Research’s head of research, Markus Thielen, pointed out that historically, transitions between administrations have led to the resignation of the incumbent SEC chair. If Trump were to assume the presidency, SEC Chair Gary Gensler might be pressured to resign early. This scenario has played out in the past with previous SEC chairs resigning due to political pressure, paving the way for new leadership and policies at the SEC.
A pro-crypto administration under Trump’s leadership could bring about a more favorable regulatory environment for digital assets. This could lead to increased growth and innovation within the crypto industry. The potential for new perspectives and policies at the SEC regarding cryptocurrencies and blockchain technology could shape the future trajectory of these emerging markets.
Thielen highlighted several bullish factors currently driving the crypto market, such as the possible introduction of spot Ethereum ETFs and rumors of Trump making a surprise announcement at a Bitcoin conference in July. Speculation suggests that Trump might endorse Bitcoin as a strategic reserve asset and address regulatory challenges faced by the industry. This kind of announcement could trigger a significant rise in Bitcoin’s value, according to Thielen.
As of the latest data, Bitcoin was trading near its previous all-time highs, hovering around $68,100. The total crypto market was valued at $2.46 trillion, with Bitcoin dominating at 54.50%. The price action of Bitcoin leading up to Trump’s potential announcement at the conference could be critical, with the $68,300 mark seen as a key level for future price movements. Investors are advised against taking premature actions such as selling or shorting Bitcoin before Trump’s speech.
The possible return of Donald Trump to office could have far-reaching consequences for the crypto industry, particularly in terms of regulatory policies and market sentiment. As the political landscape evolves, investors and industry participants will need to closely monitor developments and adapt their strategies accordingly.