Shares of major cryptocurrency firms listed on New York exchanges surged on Monday after former President Donald Trump, now a Republican presidential candidate, made a pro-bitcoin speech.
Trump’s remarks, promising more favorable regulations for the industry, led to a notable rally in crypto stocks.
Highlights
- US-listed cryptocurrency firms’ shares rose after Donald Trump’s pro-bitcoin speech.
- Coinbase shares increased by 3%, while Bitfarms, Riot Platforms, and CleanSpark saw gains between 4% and 5%.
- Trump’s stance on Bitcoin could positively impact the industry, which has faced stringent regulation under the current administration.
- Trump proposed creating a national “stockpile” of bitcoin and firing SEC Chair Gary Gensler.
- Bitcoin prices surged past $70,000 following the speech.
Cryptocurrency Market Responds to Trump’s Support
In a recent speech at a Bitcoin convention, Donald Trump, the Republican presidential candidate, positioned himself as a pro-bitcoin advocate, promising friendlier regulation for the cryptocurrency industry if elected.
This announcement led to a significant surge in shares of cryptocurrency firms listed on the New York Stock Exchange, including Coinbase, Bitfarms, Riot Platforms, and CleanSpark.
Industry Context and Potential Impact
Trump’s remarks align with a broader shift in the financial world, where cryptocurrencies are moving from the periphery to the mainstream, bolstered by institutional investors and the introduction of exchange-traded funds tied to bitcoin and ether.
Trump’s promise to fire SEC Chair Gary Gensler, a key figure in crypto regulation, and to establish a national “stockpile” of bitcoin, signals a potential shift in the regulatory landscape.
Analysts, including those from Bernstein, suggest that any “Trump trade” leading up to the US election should include a greater allocation to bitcoin and related stocks.
This sentiment reflects the growing optimism within the crypto community, despite ongoing concerns about the volatility and speculative nature of cryptocurrencies.
Market Reactions and Future Prospects
Following Trump’s speech, bitcoin prices soared past $70,000 for the first time since mid-June, indicating a bullish sentiment in the market.
As the election approaches, the cryptocurrency sector may see increased interest and investment, particularly if Trump’s proposed policies gain traction.
- Coinbase (COIN.O): Shares climbed by 3%.
- Bitfarms: Increased by 4%.
- Riot Platforms (RIOT.O): Rose by 5%.
- CleanSpark (CLSK.O): Also gained by 4%
