Trump’s Pro-Bitcoin Position Boosts Market Coinbase and Mining Stocks Surge
Crypto exchange Coinbase’s shares climbed 3%, while miners Bitfarms, Riot Platforms, and CleanSpark were up between 4% and 5%.
Trump has projected himself as the pro-bitcoin candidate ahead of the election in November. The former president’s return could be a huge win for the industry, which has often complained of excessive oversight and a hostile regulatory environment under President Joe Biden.
“Any ‘Trump trade’ into U.S election should include greater allocation to bitcoin and bitcoin-linked stocks,” Bernstein analysts wrote in a note.
Crypto has rapidly moved from the fringes of the financial world to the mainstream, helped by institutional investors’ backing and the approval of exchange-traded funds tied to the spot price of bitcoin and ether.
“The sentiment globally has been incredibly positive this year … This is all setting the scene for what many believe is the next bull run for 2024-25,” said CoinCorner CEO Danny Scott.
Still, Securities and Exchange Commission Chair Gary Gensler, the Biden administration’s top cop for crypto enforcement, has cautioned investors about the wild volatility and speculative nature of tokens like bitcoin.
On Saturday, Trump said he would fire Gensler “on day one.” He added that his administration would create a national “stockpile” of bitcoin using the crypto the U.S. government currently holds that was largely seized in law enforcement actions.
The Republican candidate has also said previously that he wants all the remaining bitcoin to be mined in the United States.
“The Goldilocks scenario for bitcoin mining is emerging,” Bernstein wrote.
On Monday, bitcoin zoomed past $70,000 for the first time since mid-June.
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