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A president loyal to the crypto industry will ensure BTC/USD growth to new highs
Adversity can bring unexpected benefits. Bitcoin has been the main beneficiary following the news of an assassination attempt on Donald Trump. The token's prices have risen by 20% from the July lows, and only a correction in the US stock market forced bulls in the BTC/USD market to retreat. However, the cryptocurrency remains hopeful for a quick recovery.
Donald Trump has established himself as a supporter of the crypto industry. In 2019, he was distrustful and claimed that Bitcoin and other digital assets could facilitate crime, but by 2024, everything had changed. The Republican has shown interest in tokens and is ready to develop this sphere to outpace China. He calls the crypto industry a young child that will develop best in the US rather than in other countries. Unsurprisingly, the rising ratings of the 45th president created a tailwind for the BTC/USD rally.
The Republicans promise to free digital assets from the regulatory challenges introduced by the Democrats, and Donald Trump intends to create problems for the Federal Reserve by launching a digital dollar. The introduction of a centralized digital dollar would pose significant competition to existing cryptocurrencies.
As a result, capital inflows into digital asset-related investment products have resumed. As of the week ending June 12, they amounted to $1.44 billion, bringing the total for the year to $17.8 billion. This significantly exceeds the 2021 total of $10.6 billion.
Donald Trump's presidential campaign accepts bitcoins as donations, and he has met with the heads of major mining companies. The crypto industry appreciates the support of the most likely future head of state, pushing BTC/USD prices upwards. Moreover, Russia intends to pass a law on using cryptocurrency transactions to pay for international agreements. This is a forced measure after the West imposed secondary sanctions against intermediary banks servicing Russia's military machine.
It should be noted that Donald Trump's return to the White House will undoubtedly sow chaos in the financial markets. He intends to adhere to protectionist policies and fiscal stimulus, which will drive inflation and force the Federal Reserve to keep rates high. The Republicans plan to solve these problems through political pressure on the Central Bank and currency interventions. His actions could create significant market volatility, creating perfect conditions for buying Bitcoin.
Technically, the daily chart of BTC/USD shows the realization of the Expanding Wedge pattern. Growth above the 78.6% and 88.6% Fibonacci levels of the last downward wave will be a basis for purchases, corresponding to the marks of 68,000 and 69,600. Conversely, a fall below 60,600 and 58,000 will be a reason for sales.
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