Analysts at Wall Street investment bank Jefferies believe former President Donald Trump's "open support" for Bitcoin and cryptocurrencies, combined with expected rising inflation, large budget deficits and political pressure on the Federal Reserve, could undermine the US dollar's dominance as a store of value.
Analysts said in a research report published on social media on July 19 that such an environment would be highly favorable for cryptocurrency stocks and miners.
Cryptocurrency support policy:
• Donald Trump's plan to extend Tax Cuts and Jobs Act (TCJA) tax breaks is possible as a way to boost consumer spending and corporate profitability, which could have a positive impact on cryptocurrency-related sectors.
• The corporate tax cut proposal could also increase investment in the crypto industry.
• Increased tariffs on Chinese goods will likely lead to higher inflation, which could prompt investors to consider alternative assets such as cryptocurrencies and gold to hedge risks.
• Reduced regulatory pressure on the energy sector could create a more favorable environment for cryptocurrency transactions such as mining.
• Plans to reduce involvement in global conflicts may reduce geopolitical risks, which will be a plus for cryptocurrencies as a stable investment instrument.
All these aspects indicate a possible positive impact of Trump’s policies on the cryptocurrency market.
#news#crypto#Techbullion
