Why Trump is perceived as better for Bitcoin … the crypto retakes $72,000 … we expect much higher prices in 2025 … we’re in a “full-blown technology boom”
Bitcoin appears to be pricing in a Trump victory.
Yesterday, the granddaddy crypto pushed above $73,000 for the first time since March. As I write Wednesday morning, it’s pulled back slightly, but still holding $72,000 and up 34% since its September low.
Now, we should be cautious about how much of this climb we attribute to Trump (the rumor of a fresh wave of Chinese stimulus is also a factor), but there is a link.
The market views Trump as more supportive of the crypto world than Vice President Harris. And as Trump appears to have gained a slight momentum edge in recent days, Bitcoin has responded.
Diving into the perception that Trump is more “pro Bitcoin” than Harris, let’s rewind to July when Trump gave the keynote speech at the Bitcoin Conference in Nashville:
This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world, and we’ll get it done.
We will have regulations, but from now on, the rules will be written by people who love your industry, not hate your industry.
The former president went on to make a handful of promises in that speech, all very bullish for crypto.
While Harris hasn’t come across as a crypto hawk, she hasn’t been as vocal of a supporter of the sector
One of the few comments she’s made on the subject came from a fundraiser in New York back in September:
We will encourage innovative technologies like AI and digital assets, while protecting our consumers and investors.
Without much else to go on, investors have mostly assumed that Harris’s stance would largely mirror that of President Biden. This is a reasonable assumption, as Harris did say in her recent interview on the TV show, The View, that “not a thing comes to mind” when asked what she would have done differently than President Biden.
With that context, Biden vetoed H.J. Res. 109. This legislation would have overturned a controversial, hawkish SEC bulletin.
Here’s CoinGeek explaining:
[H.J. Res.109 required] entities that custody digital assets for others (such as banks and financial institutions) to recognize these assets on their balance sheets.
This forced custodians to treat the assets as though they owned them, significantly impacting their accounting practices and capital requirements.
However, it isn’t clear how much banks would have to hold against digital assets, which deterred a number of big firms—including BNY Mellon, State Street and Nasdaq—from getting involved in digital asset custody…
Joe Biden made it clear that the digital asset industry is to be controlled not supported.
Now, even if Harris becomes president, we expect higher prices for Bitcoin, though the immediate reaction might be less enthusiastic than if Trump wins.
You see, there’s one factor that we believe will push Bitcoin’s price materially higher in 2025 and beyond, regardless of who’s in the White House…
Dollar debasement.
Whether it’s Trump or Harris, more deficit spending is on the way, which means prepare for more dollar debasement
Yes, due to different policies from Trump and Harris, there are certain moves you want to make with your wealth today in the lead-up to the presidential election. But one area where both candidates will be very similar is enormous deficit spending.
Sure, we could argue about who will spend more, but that would be pointless. Both will embrace deficit spending that will eat into the purchasing power of your dollars as collateral damage.
In yesterday’s Digest, I interviewed Charles Sizemore, the CIO of our corporate partner, the Freeport Society. We discussed dollar debasement in preparation for last night’s “Day-After Summit” with Charles and legendary investor Louis Navellier.
Here’s part of what Charles said:
If there is one thing that you must absolutely protect yourself against, it is the sandpaper effect of dollar debasement and inflation, which go hand-in-hand.
You can do that a couple of ways: buying good blue-chip stocks – that’s a theme of ours in The Freeport Society…
Gold is another way to protect yourself. Cryptocurrencies, real estate, all of that comes into play.
But last night’s event wasn’t just about playing defense; both Charles and Louis see election volatility – and 2025 – as an enormous moneymaking opportunity
Behind this is the reality that there are certain economic and investment trends that neither presidential candidate will stop. So, if we see any emotion-based selloffs surrounding the election, it’s an opportunity, not a threat.
Back to Charles:
If you look at the biggest macro trends that are going to dominate – and already are dominating – it doesn’t really matter who wins the election.
Take artificial Intelligence, for example. That is already happening. It’s going to continue to happen. Every major corporation is pouring tens if not hundreds of millions of dollars into developing AI tools.
If Trump wins, there may be a slightly more lax regulatory regime that speeds that up ever so slightly. But it’s not like Harris victory would change the course here. It’s still happening, no matter what.
If you missed last night’s event with Charles and Louis, they provided their playbook for how to handle election volatility, using it as a money-making opportunity, not a Black Swan event to fear. You can catch a free replay right here.
Related to Charles’ point on AI, look at the returns that some investors are making right now
Yesterday, our CEO Brian Hunt sent an internal email to a few analysts here at InvestorPlace. It included a scan of “quality growth” stocks that are breaking out. These are companies with fantastic fundamentals and stocks that just a hit a one-month high.
There’s a recurring theme: AI.
Let’s start with the returns. Here four of the top stocks from that scan, along with their one-month and one-year performance, respectively:
- Protagonist Therapeutics: 7.55%, 70.78%
- Iris Energy: 18.80%, 70.64%
- Celestica: 27.34%, 68.16%
- Argan Inc.: 23.68%, 66.63%
As to “AI,” every one of these stocks is utilizing artificial intelligence, despite operating in vastly differing sectors.
To illustrate, in my Google browser, I typed, “Does (insert company name) use AI?”
Here are the annotated results:
- Yes, Protagonist Therapeutics uses AI and advanced analytics tools to optimize marketing strategies…
- Yes, Iris Energy uses AI. The company has been expanding its AI cloud services business, purchasing GPUs to increase its capacity…
- Yes, Celestica Inc. uses AI in its products and services. [It] manufactures and sells connectivity products and storage solutions for AI data centers…
- Yes, Argan, Inc. uses AI in its stock analysis.
The rest of Brian’s list was overwhelmingly populated with companies implementing AI.
Tying back to my interview yesterday with Charles, these returns corroborate his bottom line on artificial intelligence and the presidential election:
AI is bigger than Trump. It’s bigger than Harris. It’s bigger than politics.
One more detail before we wrap this up…
Regular Digest readers know that beyond helming InvestorPlace, Brian is an accomplished investor/trader in his own right. Given that, you might find his commentary in his email about AI winners interesting:
My recommendation to investors: Get out there and get your share. We’re in a full-blown technology boom. Gale force tailwinds of wealth creation are blowing.
Yes, we could be in for some election volatility. And yes, you need to protect your wealth from debasement regardless of if it’s Trump or Harris…
But a portfolio filled with monster AI winners (and from the looks of it, Bitcoin) goes a long way toward wealth protection.
Have a good evening,
Jeff Remsburg
