Fundstrat co-founder Tom Lee believes that Bitcoin and crypto-related stocks could see significant gains if the market becomes more confident in a Donald Trump victory in the upcoming U.S. election. According to Lee, Trump’s pledge to support Bitcoin has linked the cryptocurrency’s price movement to his potential election performance.
Trump’s Potential Win and Market Response
In a recent interview with CNBC, Lee pointed out that while current polls may not fully reflect it, the financial markets seem to believe that Trump’s chances of winning are higher than anticipated. If the market becomes more certain of a Trump victory, this could trigger a rally in Bitcoin and small-cap crypto stocks, as investors anticipate favorable policy shifts. Lee suggests that cyclical stocks, smaller companies, and Bitcoin will outperform due to Trump’s distinct economic policies.
Trump’s Support for Bitcoin
Donald Trump has pledged to support Bitcoin and cryptocurrency markets, moving away from the regulatory uncertainty that has plagued the sector. His support is seen as a positive for Bitcoin’s future performance, particularly as the crypto market seeks clearer regulatory frameworks. The Securities and Exchange Commission (SEC) has been under scrutiny for its enforcement approach, which has led to multiple lawsuits against crypto firms.
Crypto Stocks and Market Performance
Crypto stocks have seen renewed momentum following the approval of spot Bitcoin ETFs in the United States, leading to a strong rally in both Bitcoin and crypto-related stocks during Q1. Analysts suggest that the next bullish phase could be influenced by a combination of rate cuts and the U.S. elections.
However, despite the recent optimism, crypto stocks experienced a decline at the time of reporting. Coinbase, for example, was trading at $199.22, down 3.4%, while MicroStrategy (MSTR) saw a 4.48% drop to $135. Bitcoin mining stocks have also been affected, though miners are planning new acquisitions to improve their market performance.
As the U.S. election approaches, the potential impact of Donald Trump’s market backing continues to be a key focus for investors in the crypto space.
Related topics:
Israel’s Bitcoin Moment: Unlocking New Economic Opportunities
Why is Southeast Asia’s Largest Bank Making a Play in Crypto-Assets with DDex?
Crypto for the Environment: The Rise of Sustainable Blockchain Solutions
