Analysis of Trump's Victory on the Crypto Assets Market

Trump unexpectedly won the US election, triggering positive expectations in the global Crypto Assets market regarding the future policy environment. The market generally believes that the new government's ascendance will bring new development opportunities for the crypto industry, potentially reducing regulatory pressure and providing a more open policy space. The Republican Party's pro-business stance, coupled with Trump's team's free market thinking, has led investors and industry leaders to hold an optimistic view of the shift in the US's attitude towards crypto regulation. Under this expectation, the price of Bitcoin quickly rose to a historic high of $76400.

The Shift in Regulatory Environment and New Policy Directions

Trump's victory has brought new hope to the Crypto Assets market. Analysis reports indicate that the new government's inauguration may accelerate personnel changes at the Securities and Exchange Commission (SEC), introducing a new chairman who is more supportive of Crypto Assets. The Republican Party's support for decentralized finance (DeFi), stablecoins, and other areas may promote the passage of related regulations, bringing clearer policy guidance to the industry.

The Chief Legal Officer of a trading platform expects a "significant change" in the number of SEC's crypto asset cases under the leadership of the new chairman, with the new government potentially reassessing all existing crypto asset cases. The platform's CEO stated that the Congress controlled by the Republican Party is the "most supportive Congress for crypto assets in history," which is extremely beneficial for the industry's compliance and security.

In addition, there are reports that the "21st Century Financial Innovation and Technology Act" (FIT21), passed earlier this year, may be shelved due to Trump's victory. As crypto asset lobbying groups shift towards supporting more favorable legislation, the new regulatory environment could become more lenient, providing good development space for the market.

Bitcoin Reserves and Market Outlook

The positive impact of Trump's election quickly reflected in the price of Bitcoin. During the election ballot counting, Bitcoin once broke through $75,000, setting a new historical high. Analysts predict that the price of Bitcoin may further rise to $90,000 in the future, and is expected to reach $200,000 by 2025. This expectation is widely recognized by market analysts, especially for institutional investors, as the value attributes of Bitcoin as "digital gold" are increasingly emphasized.

Industry insiders point out that Trump's election could bring a "180-degree turnaround" to the Web3 industry, believing that Bitcoin's market performance has not yet fully reflected the profound impact of this policy shift. Institutional allocation to Bitcoin may significantly increase, becoming one of the mainstream financial assets, and this trend could further accelerate in the coming years.

Market Volatility and Trading Opportunities

Analysts hold a positive view on market volatility. The portfolio manager of a Singaporean investment company believes that Trump's victory will bring short-term market fluctuations, which present new opportunities for traders. These fluctuations mainly stem from shifts in market expectations regarding whether Trump will fulfill his encryption-friendly promises. As policy tendencies become clearer, market volatility may prompt investors to reassess their Crypto Assets market investment strategies, leading to new trading opportunities.

Institutional Investors' Attitudes and Market Inflows

With Trump's policy shift towards a more favorable stance on the Crypto Assets market, institutional investors' interest in this market is also increasing. The head of a research institution stated that the Trump administration's policy shift will bring a new wave of capital inflow into digital assets such as Bitcoin, especially among institutional investors. Although the Crypto Assets market has attracted approximately $29 billion in inflows this year, this growth still has tremendous potential.

Analysts from a trading platform anticipate that after Trump is elected, the crypto market will usher in a "new wave of hope." With industry expectations that federal agencies will adopt a more friendly attitude towards Crypto Assets, this trend is expected to facilitate more capital inflow into the Web3 sector. The analysts stated: "We expect that in the short term, a large amount of capital will be unleashed for the crypto field."

The Rise of the DeFi Sector and Market Vitality

Trump's victory may also promote the native sector of the Crypto Assets industry, especially the rise of DeFi. The Trump family previously issued a DeFi project, indicating their attention to the native sector of Crypto Assets. Although the victory did not directly improve the presale situation of the project, it demonstrated an interest in the DeFi sector.

A founder of a decentralized organization stated on social media that Trump's victory will drive a "real sustainable revival" of DeFi, and the likelihood of the number of users in the DeFi sector increasing tenfold will significantly rise. He pointed out that DeFi can benefit more than other areas of the crypto assets industry from the reduction of regulatory uncertainty in the United States, as its decentralized nature aligns better with the free market principles supported by the Republican Party.