Shares of the New York-based cryptocurrency company surged on Monday after Republican presidential candidate Donald Trump endorsed Bitcoin and promised friendlier regulations for the industry.
The former president, speaking at the 2024 Bitcoin Conference in Nashville, Tennessee over the weekend, vowed that if re-elected to the White House, “the United States will become the crypto capital of the planet and the global bitcoin superpower.”
Shares of cryptocurrency exchange Coinbase rose 3.7% on Monday, while shares of crypto miners BitFarm, Riot Platforms, and CleanSpark also rose 3.4% to 4.5%.
Bitcoin rose 2.4% to its highest level since mid-June before giving up gains later in the day. The token was worth $68,142.70 in midday trading.
“Any 'Trump trade' heading into the US presidential election should include increasing allocations to Bitcoin and Bitcoin-related stocks,” the Bernstein analysts wrote in a note.
Cryptocurrencies have quickly moved from the financial fringes into the mainstream, spurred by the backing of institutional investors and the approval of exchange-traded funds linked to the spot prices of bitcoin and ethereum.
“Global sentiment has been incredibly positive this year, with many believing this is all setting the stage for the next bull market in 2024-2025,” said Danny Scott, CEO of CoinCorner.
The Republican candidate has pledged to deregulate the industry as he runs counter to President Joe Biden, who has been criticized for his administration's heavy-handed oversight.
President Trump has unveiled his plans for the Bitcoin industry, including firing SEC Chairman Gary Gensler, collecting a U.S. cryptocurrency “stockpile,” and establishing a Bitcoin Advisory Council.
Gensler has previously defended Biden's cautious approach to the cryptocurrency industry.
“Misconduct and fraud are rampant across our industry,” Gensler said in March.
He cites cryptocurrency volatility as a risk.
“For three and a half years, this Administration has waged a war on cryptocurrencies and Bitcoin like no one has ever seen,” Trump said.
“If Bitcoin goes to the moon, I want America to be the leader,” he said, arguing that under his leadership the cryptocurrency could surpass gold in value.
President Trump has revealed plans to create a strategic Bitcoin reserve using the government's current holdings of cryptocurrency that have been seized during law enforcement actions.
The presidential candidate has previously said he wants all remaining cryptocurrencies to be mined within the United States.
This is not the first time a possible Trump victory has sparked excitement among crypto investors.
Bitcoin shares surged to a two-week high after an assassination attempt at a rally in Pennsylvania left President Trump bleeding from his ear, with some investors saying the shooting improved Trump's chances of winning.
After the surge, Bitcoin rose 8.6% to $62,508, bringing its year-to-date gains to 47%.
Blockchain Ether also rose 6.8% to $3,322.
While Trump is now widely seen as the crypto industry's nominee, he was a skeptic of the industry during his time in the White House.
“The United States has only one real currency and it's stronger than it's ever been: the US Dollar!” he said in 2019.
Trump later reversed course and his campaign began accepting cryptocurrency donations in May.
His running mate, Senator J.D. Vance, has supported pro-cryptocurrency legislation and holds shares in Bitcoin.
Meanwhile, it is unclear what Vice President Kamala Harris's position is on cryptocurrencies.
The Democratic front-runner worked under Biden's regulation-heavy administration and is reportedly working to gain industry expertise.
Businessman and “Shark Tank” star Mark Cuban said her campaign reached out to him to learn more about cryptocurrency.
With post wire
