Following Trump’s election win, both traditional company stocks and cryptocurrency markets like Bitcoin have shown growth and sparked investor interest. Historically, Trump’s policies have aimed towards deregulation and tax cuts, often providing favorable conditions for stock market growth as seen in his last term. This trend is likely to continue if his administration prioritizes reduced corporate taxes and economic growth. With this backdrop, sectors such as energy, technology, and finance might see strong performance, encouraging both domestic and foreign investment in U.S. markets.
Bitcoin and other cryptocurrencies could benefit indirectly. In previous years, Trump’s stance on crypto was cautious, but the shift toward digital assets worldwide has grown immensely since then. Investors who view Bitcoin as an opposing factor to inflation may feel more safe with Trump’s emphasis on economic growth. The New York Times states that since the election, Bitcoin has reached record high levels and increased to over 130% of its last 11 years value. As the economy grows, alternative assets like Bitcoin, given the increasing acceptance of crypto by major financial institutions will become more used.
Despite the optimism in financial markets, there still remain risks. Deregulation can lead to increased economic flakiness, and cryptocurrency markets remain highly speculative and unregulated. Investors may benefit in the short term, but it’s essential to consider the possible long-term impacts of minimal regulation and the potential for economic collapse that unchecked growth can create. While this provides a good opportunity for the US to grow economically, carefulness could lead to consequences and economic downfall.