30s Summary

Donald Trump’s victory in the US election has sparked renewed interest in cryptocurrency, particularly Bitcoin. Ryan Chow of Solv Protocol suggests this could initiate a new ‘bull market’, despite platforms like Coinbase experiencing a drop in stock value due to lower-than-expected profits. The lack of regular investor activity is believed to be from hesitation following the loss many experienced from FTX’s collapse. However, crypto experts speculate that Trump’s supportive stance on the crypto industry could encourage these investors to reenter the market.

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After Donald Trump’s win in the US election, there’s been a sudden rise in people getting interested in cryptocurrency, with Bitcoin prices going through the roof. The reason? Trump’s going big on supporting crypto.

Experts are saying that this might be the signal that kicks off another ‘bull market’ — that’s when things are on the up and up. Ryan Chow, the top guy at Bitcoin staking platform Solv Protocol reckons Trump’s win is a big reason for this potential spike.

Chow reckons Bitcoin hitting its highest value yet is one of the best ads for crypto going. Traditionally, regular people like you and me have played a big role in Bitcoin highs. However, recently it’s been more about big investors, especially after some new rules on Bitcoin funds were passed early this year.

Things are looking a bit less sunny for Coinbase — a popular platform for crypto — their stock value dropped after revealing lower-than-expected profits. Their revenue wound up at $1.13 billion, which is a big increase from last year, but still fell short of experts’ predictions of $1.26 billion.

Their poor results were blamed on less crypto trading from regular people. Online payments platform PayPal also reported a decrease in crypto held by their customers. This shows a drop in crypto activity amongst everyday people.

Crypto expert, Noelle Acheson, reckons regular folks tend to be ‘late adopters’ because they usually jump in when the prices are high and there’s a lot of buzz about it socially. Crypto investor and teacher, Chris Dunn, agrees saying Trump’s victory and Bitcoin’s record highs have got people searching for Bitcoin on Google more than ever before.

What’s interesting is even though Bitcoin’s been doing well since Nov 2022, regular people haven’t been rushing to get in on the crypto market. This could be because, in the past, regular people often jump in too late and end up getting the short end of the stick while the seasoned investors make off with the profits.

Chris Dunn believes this delay might be because everyday investors are still recovering from the fallout of FTX, a crypto company which collapsed and lost lots of people’s money. Dunn thinks Trump’s win and promises to support the crypto industry could boost the confidence of these regular investors. Trump even promised to replace the current head of the SEC with someone more pro-crypto and to limit Senator Elizabeth Warren’s influence over Bitcoin — though that’s not really within his powers.

So, while a lot of folks might still be wary after losing out in the past, Trump’s win and Bitcoin’s high prices could be the push they need to get back into the crypto market.