Markets
US Regains Crypto Crown, Trump Polls Show Gains
As Bitcoin surpassed $71,000 on Wednesday, the United States also appears to be regaining its dominance in crypto markets ahead of the much-anticipated US presidential elections.
Experts analyze that the US lead is driven by record-breaking Bitcoin ETFs, supportive regulators, rising political donations and the growing prominence of crypto advocate Donald Trump.
That the resurgence is evident on several indicators, particularly the return of the US dollar as the most traded currency relative to crypto assets, surpassing the South Korean WON in early May, according to research firm Kaiko.
This marks a significant change from last year, when trading volumes were shifted to Asia due to strict enforcement actions by US regulators. The Securities and Exchange Commission, after targeting companies like Binance and Coinbase Global Inc. in 2023, surprised the market in late May by approving exchange-traded funds (ETFs) that invest in Ether.
Trump maintains a slim lead over President Joe Biden in current polls, according to data from Morning Consult. Meanwhile, the Financial Technology and Innovation for the 21st Century Act, which aims to establish a new regulatory framework for cryptocurrencies in the US, has a greater chance of becoming law in 2025, as noted by Bloomberg Intelligence analysts.
The political shift in favor of crypto began on January 11 with the introduction of spot Bitcoin ETFs from BlackRock Inc. These ETFs have accumulated $61 billion in assets, making them one of the most successful fund category launches ever the times.
Mike Novogratz, CEO of Galaxy Digital, predicted that a favorable political climate in the US could push the price of Bitcoin above $100,000 by the end of the year. On Wednesday afternoon in Singapore, Bitcoin was trading at $71,130.
According to Galaxy Digital, the US is home to 324 crypto-focused venture capital firms, far surpassing the 66 in second-place Singapore. Pantera Capital and Paradigm, two major US investment firms, are raising significant new funds, highlighting the US’s strong position in the crypto market.
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