Shares of cryptocurrency firms listed on the New York Stock Exchange saw notable gains before the market opened on Monday, buoyed by Republican presidential candidate Donald Trump’s supportive comments on bitcoin and his promise of more favorable regulation for the industry.
Coinbase’s shares rose by 3.7%, while cryptocurrency miners Bitfarms, Riot Platforms, and CleanSpark experienced increases between 3.4% and 4.5%.
Analysts at Bernstein observed, “The crypto market views a potential Trump victory as a more favorable outcome for the industry compared to the Biden administration’s stringent regulatory stance. Trump’s pro-bitcoin rhetoric has positively influenced market sentiment.”
Crypto executives have frequently criticized the current administration for its perceived hostile regulatory environment. Securities and Exchange Commission Chair Gary Gensler, the chief regulator for the crypto sector, has defended his stance, citing the extreme volatility and speculative nature of cryptocurrencies like bitcoin.
Despite regulatory challenges, the cryptocurrency sector has rapidly moved towards mainstream acceptance, bolstered by institutional investment and the introduction of exchange-traded funds linked to the spot prices of bitcoin and ether.
Trump’s recent statements have further energized the market. On Saturday, he proposed creating a national “stockpile” of bitcoin using the crypto assets currently held by the U.S. government, which were mostly seized during law enforcement actions. He also reiterated his support for increasing domestic bitcoin mining.
Bernstein analysts noted, “A favorable scenario for bitcoin mining is taking shape.”
In addition to the rise in crypto stocks, shares of prison operators and other sectors that could benefit from a Trump presidency also saw gains on Monday. This uptick in stock values coincided with increased speculation about Trump’s chances of winning the November election following an assassination attempt against him.
Bitcoin itself saw a jump of up to 2.4%, reaching its highest level since mid-June.
