What Trump 2.0 means for crypto investors

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Trump is back in the White House and this time he's pro-crypto.

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With Donald Trump set to be inaugurated as US president for the second time this week, we're taking a look at 3 of the key ways his administration may impact the crypto industry:

1. More volatility

As the first pro-crypto president, Trump's second term is expected to see a surge of interest in the cryptocurrency sector.

This could mean crypto prices become even more volatile than normal as billions in additional capital flows into the market.

The markets arguably got an early taste of this volatility after Trump launched his own official memecoin ($TRUMP) over the weekend.

While the meme coin was soon worth billions of dollars, it caused havoc to the wider market.

Investors seemingly flocked to buy TRUMP, causing other cryptocurrencies to fall at a time when many expected a crypto rally.

It could end up being a good bellwether for how the crypto markets behave under his presidency.

Trump's return to the White House also coincides with the part of the Bitcoin halving cycle where the crypto bull market has historically accelerated.

That would mean we could potentially get dramatic price appreciation followed a huge crash.

Whether history repeats itself is a different story.

2. Less regulation

Trump has consistently run on a pro-business, anti-regulation platform and has promised the same when he reassumes the presidency.

After 4 years of a Biden administration that was antagonistic towards the crypto industry, many insiders believe Trump is likely to remove much of the red tape blocking crypto companies in the US.

Under Trump, the Securities and Exchange Commission (SEC) is also likely to drop its ongoing court cases against crypto companies like Ripple (XRP) and take a more laissez-faire approach to litigating crypto.

It's also extremely likely than coins like Solana, XRP and others are approved for ETF trading in the US, increasing crypto's exposure on the stock market.

3. More innovation

One of the knock-on effects of less regulation is the potential for more innovation in the crypto sector.

Many crypto projects have been operating under regulatory uncertainty over the last few years, with the spectre of legal action a firm possibility.

By removing existing regulations or even simply adding greater regulatory certainty, many crypto projects will be free to experiment and innovate in ways that weren't possible under the previous administration.

The upshot of this is that now is crypto's best opportunity to prove it has serious, real-world utility.

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Trying to get a handle on the markets? Cut through the noise with our overview of the best cryptos to buy right now, explore some strategies for how to trade crypto or see if there's a better platform for you with our guide to the best crypto exchanges.

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