Trump GOP trifecta and Bitcoin price post-halving boom set the stage for major economic and crypto market shifts in 2025.
In the recent U.S. elections, the Republican Party is set to take control of the House, Senate, and the White House, giving Donald Trump a second term as president with full Republican control of the government. This significant political shift could have profound effects on the economy, including the cryptocurrency market, which has already seen a surge in Bitcoin prices. But Trump’s win isn’t the only factor driving Bitcoin’s rally—other forces, like the recent halving and increased demand, are pushing prices higher.
Trump GOP Trifecta: Full Republican Control of Government
After the recent election Republicans will control the House, Senate, and the presidency. This gives them full control of the government. It will be the first time since 2019 that the GOP has had this power. The new Congress and Trump’s presidency will start in January 2025, bringing in new policies that could affect areas like technology, finance, and cryptocurrency.
A Republican-controlled government is often associated with policies that favor deregulation, lower taxes, and a free-market approach. This environment could be good for cryptocurrency growth, as Republicans have generally supported the industry more than previous administrations. Two important crypto bills—the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Clarity for Payment Stablecoins Act—might finally move forward after being stuck under Democratic control. These bills aim to make the rules for cryptocurrencies and stablecoins clearer, which could reduce confusion for investors and encourage more people to use them.
Bitcoin Price Boom: Beyond Trump’s Win
Bitcoin price recently surged to $90,000, hitting a new all-time high, as investors get excited about the crypto-friendly approach of President-elect Donald Trump. However, they are not the only reasons for Bitcoin’s recent price rise. According to Jesse Myers, co-founder of Onramp Bitcoin, the real driver behind Bitcoin’s rally is a supply shock following the most recent “halving” event. Bitcoin’s latest halving occurred in April, cutting mining rewards from 6.25 BTC to 3.125 BTC per block, effectively reducing the rate at which new Bitcoin is introduced to the market. This supply cut has created a scarcity effect, where demand remains high, but there’s less Bitcoin available to meet it.
After a halving, Bitcoin price has usually gone up. Investors expect it to become scarce, so they buy before the next big price jump. Myers noted that Bitcoin’s unique structure—where new supply creation halves every four years—causes predictable cycles of price spikes. This cycle has occurred after each of Bitcoin’s previous halvings, in 2012, 2016, and 2020, and experts expect this trend to continue in 2025.
Demand Surge from Bitcoin ETFs
New Bitcoin exchange-traded funds (ETFs) were introduced in the U.S. earlier this year, making it easier for investors to buy Bitcoin as part of their investment portfolios. These ETFs have seen a lot of investment, with one day in November seeing nearly 13,940 BTC bought, while only 450 BTC were mined that day. This large amount of money going into Bitcoin ETFs is increasing demand and helping drive up the price.
A Limited Supply of Bitcoin Price
Bitcoin’s total supply is capped at 21 million, and already 94% of this supply has been mined or lost. This means there are only around 1.2 million BTC left to be mined. As more investors buy Bitcoin, this limited supply will push prices even higher. Currently, Bitcoin’s price is around $76K according to CoinMarketCap.
Financial analyst James Check has compared Bitcoin’s current market cap to that of gold, pointing out that Bitcoin is much scarcer. While the supply of gold continues to grow as new sources are mined, Bitcoin’s supply is fixed. This scarcity, combined with a strong base of long-term holders, makes Bitcoin unique in its ability to grow in value over time.
Institutional and Global Adoption
The U.S. might not be the only country thinking about creating a Bitcoin reserve. Financial expert Anthony Scaramucci recently suggested that the U.S. could set one up and other countries might do the same. At the same time, more big investment firms are starting to put money into Bitcoin and other cryptocurrencies. This trend, combined with a favorable political environment and regulatory clarity, could make 2025 a pivotal year for mainstream crypto adoption.
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Trump GOP Trifecta: Looking Ahead to 2025
The convergence of a GOP-led government, Bitcoin’s post-halving supply shock, and increased demand through ETFs could make 2025 a landmark year for Bitcoin and the broader cryptocurrency market. Trump’s second term could usher in policies favorable to digital assets, while the scarcity of Bitcoin and rising institutional interest may push prices higher. Investors, both new and experienced, will be watching closely as these trends unfold, setting the stage for what could be a new era for cryptocurrency in the United States.
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