The potential victory of Donald Trump in the US elections has led to significant movements in the crypto market.
- Argo Blockchain’s shares have risen substantially in the London stock market, boosted by Trump’s perceived crypto-friendly stance.
- Bitcoin and other cryptocurrencies are experiencing a resurgence, reflecting optimism about deregulation under a Trump administration.
- The pound’s weakening against the dollar has contributed to the uptick in London’s main index.
- Investors are viewing Trump’s possible win as a gateway to increased demand and growth in the digital currency sector.
Argo Blockchain has witnessed a notable increase in its share value, rising by as much as 17% to reach 11 pence in early London trading. This surge is part of a broader optimistic trend in the cryptocurrency sector, driven by the potential victory of Donald Trump in the US presidential election.
Trump is viewed as a proponent of the cryptocurrency industry, having expressed aspirations to transform the United States into a global hub for bitcoin and cryptocurrencies. This promise, coupled with his plans to introduce a digital currency platform named World Liberty Financial, has invigorated stakeholders.
Bitcoin itself has experienced a rise of over 7%, reflecting growing confidence in a regulatory environment more favourable to cryptocurrencies under a Trump presidency. Analyst Russ Mould from AJ Bell noted the correlation between Trump’s poll performance and bitcoin’s market value, suggesting that investors are optimistic about Republican policies enhancing digital currency demand.
This rally marks a stark contrast to the turbulent period of the Biden administration, where the industry faced significant challenges, including regulatory crackdowns that saw fines and legal actions double compared to previous years. Such regulatory pressures had driven bitcoin prices down to $17,000 by the end of 2022, following notable collapses in the crypto space.
The expected Trump victory is anticipated to herald a new era for cryptocurrency, with speculators predicting a reduction in regulatory restrictions. OKX’s Chief Commercial Officer, Lennix Lai, highlighted this shift as a potential paradigm change for the industry, signalling renewed growth prospects.
Similar market activities were observed beyond the crypto realm, with marijuana-related stocks also showing gains. Trump’s campaign promises about decriminalising cannabis appear to have bolstered shares in companies like Mendell Helium, which saw a substantial rise.
Overall, the weakening pound has played a role in the positive shift within the London stock market. Large UK-based firms with significant US operations, such as IHG and Barclays, have also experienced stock price increases.
The anticipation of Donald Trump’s victory has significantly incentivised investors, fostering growth in both the cryptocurrency and broader stock markets.
