Could POTUS Donald Trump Ignite the Next Big Bitcoin (BTC) and Crypto Market Bull Run Rally?
Some believe the next crypto rally will be fueled by bitcoin ETF approval or institutional investors. Other analysts, however, claim U.S. President Donald Trump could setup the next major crypto rally.
To be fair, only one analyst has publicly connected Trump with the next crypto rally. That analyst is Ross Gerber. On Twitter earlier today, Gerber suggested that Trump could be setting up the next major crypto bull run:
Trump might be setting up a huge bitcoin rally. This is what it was made for… just saying. #crypto is NOT dead. Haven’t sold mine and not going too.
— Ross Gerber (@GerberKawasaki) December 23, 2018
Gerber is the co-founder and CEO of Gerber Kawasaki, a wealth and investment management firm based in Santa Monica, California.
Unfortunately, Gerber didn’t give much explanation to this thought. It did, however, spark an article from Bitcoinist that explored the idea that Trump could fuel the next crypto rally.
At first glance, it seems unusual that Trump, who infamously does not use computers – may be the spark that ignites the next crypto rally. However, if you take a closer look, Trump is making moves that could prepare crypto for a brighter future. You could even write a conspiracy theory arguing that Trump is a secret bitcoin hodler.
Some of the reasons Trump could ignite the next bitcoin rally, as pointed out by Bitcoinist, include:
The War Of Words With The Federal Reserve
Let’s start with something obvious that Donald Trump and bitcoin hodlers have in common: they hate the Federal Reserve and other centralized banks. This past week, Trump has been unusually outspoken against the Federal Reserve, suggesting that he could fire the Chair of the Federal Reserve after The Federal Reserve raised rates once again.
Trump’s staff later had to tell him that he did not have the power to fire the Chair of the Federal Reserve. Despite this small problem, Trump claims the high interest rates are “the only problem” with the U.S. economy.
Mick Mulvaney Is A Bitcoin Supporter
Trump recently appointed bitcoin supporter Mick Mulvaney as his acting Chief of Staff. Mulvaney will also continue in his current role as Trump’s Budget Director. Mulvaney is a well-known bitcoin supporter and has previously expressed support for blockchain technology.
Inflation Boosts The Price Of Bitcoin Relative To The USD
There’s another layer to the Federal Reserve’s decision to raise interest rates. Trump believes ending quantitative easing (QE) could bring about another recession. Over the past decade, quantitative easing has injected billions into the U.S. economy. As billions of more U.S. dollars get added to circulation, the price of bitcoin rises relative to the USD.
A Government Shutdown Could Lead To A Crisis, And Bitcoin Loves A Good Crisis
As Wall Street veteran Max Keiser said in a recent interview with Bitcoinist,
“Bitcoin adoption has always been driven by bank failures, bailouts, bail-ins, and political unrest.”
The rise of bitcoin was fueled by the last economic crisis. Bailouts, bank failures, and political unrest pushed people towards cryptocurrencies like bitcoin. The next economic crisis could be the turning point in crypto adoption. The last economic crisis created bitcoin; the next economic crisis could force people to adopt bitcoin.
The current U.S. government shutdown is scheduled to last until December 28. However, with neither side budging on the $5 billion wall funding deficit, both sides seem to agree the shutdown could last into January 2019. In January 2019, the House will hold a Democratic majority, which could cause further frustration for Trump’s political goals, creating more government chaos and political instability.
Is Trump A Bitcoin Hodler?
Gerber’s comments on Twitter earlier this week have been mostly laughed away – especially because Gerber did not elaborate on his point. However, it’s certainly possible that Trump’s policy making over the last few months has setup a legendary crypto bull run – even if the bull run is linked more to unintentional mistakes than intentional policy.
Is Trump a bitcoin hodler? Will the government shutdown and other upcoming political events push bitcoin to new heights? We’ll have to wait to find out.