The recent positive shift in Donald Trump’s policy towards the crypto industry has been noted by investment bank Jefferies, which could potentially impact the price of bitcoin in the near term depending on the outcome of the U.S. presidential election. Trump’s promises to install crypto-friendly regulators and create a crypto industry presidential advisory council have raised hopes within the industry. The bank highlights that larger bitcoin miners are still in growth mode, with plans to expand their installed hashrate despite the recent drop in network hashrate following the halving in April.
The political undertone at the Bitcoin Nashville conference, with prominent politicians including both Republicans and Democrats in attendance, has added to the speculation surrounding the impact of the upcoming election on the crypto industry. Trump’s commitment to maintaining a strategic bitcoin reserve and not selling the government’s seized bitcoin has been seen as a positive development by industry analysts. The promise to make the U.S. the “crypto capital of the planet” has also been received positively by the cryptocurrency community.
According to Jefferies, the profitability of bitcoin mining following the halving is better than initially feared. Despite a 40%-45% decrease in mining revenue per exahash, larger miners are still looking to expand their operations and increase their hashrate. The report suggests that the industry is entering a consolidation phase, with several acquisitions and public offers already taking place. Access to power is seen as more valuable than mining fleets, according to comments from mining firm management teams.
The potential for further M&A activities in the mining sector, coupled with Trump’s promises to support the crypto industry, has created a sense of optimism within the industry. The implication of a more crypto-friendly regulatory environment under a Trump administration has led to speculation about the impact on the price of bitcoin in the short term. While the outcome of the election remains uncertain, the promise of a strategic bitcoin reserve and a crypto industry advisory council has provided some reassurance to industry stakeholders.
Overall, the shifting political landscape in the U.S. has introduced a new level of uncertainty and excitement within the crypto industry. The potential for a more supportive regulatory environment under a Trump administration, coupled with positive developments in the mining sector, has raised hopes for continued growth and innovation in the industry. As the election approaches, all eyes will be on the outcome and its potential impact on the future of bitcoin and the broader crypto ecosystem.
