Shares of New York-listed cryptocurrency firms surged ahead of Monday’s opening bell following Republican presidential candidate Donald Trump’s endorsement of Bitcoin and his promise of friendlier regulation for the industry.
Crypto exchange Coinbase’s shares rose by 3.7%, while miners Bitfarms, Riot Platforms, and CleanSpark saw increases ranging between 3.4% and 4.5%.
The crypto market interprets a scenario of a Trump win as more positive for crypto, given the Biden administration’s strong regulatory crackdown on crypto and Trump’s pro-Bitcoin statements,” analysts at Bernstein wrote in a note.
Crypto executives have frequently criticized the current administration for what they perceive as excessive oversight and a hostile regulatory environment under President Joe Biden. However, Securities and Exchange Commission (SEC) Chair Gary Gensler, the administration’s lead enforcer of crypto regulations, has defended his stringent view of the industry, citing the wild volatility and speculative nature of assets like Bitcoin.
Despite regulatory challenges, cryptocurrency has rapidly transitioned from the fringes of the financial world to the mainstream, bolstered by institutional investors’ backing and the approval of exchange-traded funds tied to the spot prices of Bitcoin and Ether.
A Trump victory could further enhance the industry’s prospects. On Saturday, Trump announced that his administration would create a national “stockpile” of Bitcoin using the cryptocurrency currently held by the U.S. government, largely seized in law enforcement actions. The Republican candidate has also expressed a desire for all remaining Bitcoin to be mined in the United States.
The Goldilocks scenario for Bitcoin mining is emerging,” Bernstein analysts commented.
In response to Trump’s remarks, Bitcoin also jumped as much as 2.4%, reaching its highest level since mid-June.
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