According to Fox News, Donald Trump has secured victory in the 2024 US presidential election with 277 electoral votes to Kamala Harris’ 226, and a decisive victory in Pennsylvania. The media also reported that Trump maintained a strong lead in seven swing states, paving his way to the presidency. In addition, the US Senate appears to have been taken over by the Republicans, who have won a 51-seat majority. Since the Republicans are also ahead in the House of Representatives (currently 189 seats to the Democrats’ 163 seats), the legislative situation is now favorable for pro-cryptocurrency policies, as Republican lawmakers have historically shown support for the industry.
As the first "crypto president," Trump's victory is expected to be good for the cryptocurrency industry, especially if he fulfills his promises to establish Bitcoin as a reserve asset, pardon Silk Road founder Ross Ulbricht, and replace Securities and Exchange Commission (SEC) Chairman Gary Gensler. The cryptocurrency industry may usher in a more favorable regulatory environment, especially if Hester Peirce, a well-known supporter of crypto-friendly policies, serves as the chairman of the SEC. This shift may help approve ETFs for major tokens such as Solana, Ripple, and Dogecoin, expand real-world asset (RWA) applications, and promote institutional activities in the decentralized finance (DeFi) field, given Trump's previous support for DeFi through initiatives such as WLFI.
On the fiscal front, according to Bloomberg, Trump's policies could push the U.S. debt-to-GDP ratio to 116%, putting potential pressure on the Federal Reserve to accelerate rate cuts. Attention will now turn to the Fed's upcoming interest rate adjustments and quantitative tightening decisions. This macroeconomic environment could create favorable market conditions for Bitcoin, with a strong fourth quarter expected and laying the foundation for a potential bull cycle in 2025.
