The leading cryptocurrency continues to experience fluctuations and is lingering around $67,300 as this article is being prepared. The US markets opened as the article was being prepared, and the price quickly rose to $68,000 before retreating. Putting short-term movements aside, a significant development awaits us at the beginning of 2025.
What Awaits Cryptocurrencies in 2025?
As polls indicate, Trump is likely to win the upcoming November elections, especially with Biden stepping back from the race. Trump will face Democrat candidate Harris. Following recent events, such as a shooting incident, Trump’s support has surged, suggesting a stronger voter turnout.
For cryptocurrency investors, a Trump victory is crucial. The Biden administration has been notably hostile towards crypto, particularly in the wake of the FTX collapse. This led to some US-based crypto companies considering relocation to more crypto-friendly nations like the UAE.
Will SEC Chairman Step Down?
With Biden’s term concluding, Trump is expected to assume office following the November elections. However, even if Harris wins, SEC Chairman Gensler, a key figure of Biden’s administration, is anticipated to resign by February 2025.
Thus, the crypto market may see Gensler’s departure by early 2025. If Trump secures the presidency and appoints a crypto-friendly SEC Chairman, many issues, such as the classification of altcoins as securities, might be resolved. Trump’s victory will push him to fulfill promises to his crypto-supportive voters.
Key Takeaways for Investors
- Trump’s election could lead to a more favorable regulatory environment for cryptocurrencies.
- Investors may see a positive shift in market sentiment as early as 2025.
- New leadership at the SEC could reclassify the status of altcoins, potentially reducing regulatory pressure.
- Major crypto companies might no longer consider relocating outside the US if the environment becomes friendlier.
In the coming weeks, it would not be surprising if these expectations support positive sentiment in crypto. BTC is currently close to $67,000.