The crypto startup market appears to be hopeful following the presidential election, with analysts and entrepreneurs sensing that a change in the White House could mark the beginning of a new era for digital currencies.
So far this year, more than two dozen deals have been finalized in the industry, although only one stands out for its magnitude: Robinhood’s acquisition of Bitstamp for $200 million in June. Bitstamp, a global player with more than 50 active licenses and registrations, reflects the kind of strategic assets that attract big names in the industry.
Meanwhile, Donald Trump’s victory has been welcomed as a “wind of change” in the industry, where a shift in the federal government’s stance towards greater openness to the crypto industry is expected. According to The New York Times, this change could also mean the departure of Gary Gensler, chairman of the SEC, known for his strict regulatory approach to the sector.
Some experts claim that these changes are due to people’s uncertainty about the future of the crypto industry.
“When people don’t know what political changes are about to happen, they move their money to the safety of the USD. What’s interesting is the rise of cryptocurrencies right now, as speculators believe that Trump and Musk will boost the popularity of virtual currencies,” said Justin Grobbard, founder of Prop-Firms.com.
Trump himself has acknowledged being an investor in digital assets. He owned between $1 million and $5 million worth of ethereum (ETH-USD), the world’s second-largest cryptocurrency, according to a Federal Election Commission report.
In addition, he and his sons are also backers of World Liberty Financial, a cryptocurrency project they have been promoting on social media.
This past week Bitcoin rose to more than $100,000 per coin after Trump announced that Paul Atkins, a cryptocurrency enthusiast, would be nominated to lead the Securities Exchange Commission (SEC).
