Jefferies Group predicts a bull rally for crypto-related stocks if Donald Trump is re-elected as U.S. President, driven by his pro-crypto stance and anticipated economic policies.
Points
- Jefferies Group predicts a bull rally for crypto stocks under a Trump presidency.
- Trump’s pro-crypto stance and economic policies are key factors.
- Equities and gold miners also expected to benefit from reduced USD dominance.
Jefferies Group, a leading investment banking and capital markets firm, forecasts a bullish outlook for crypto-related stocks if Donald Trump is re-elected as U.S. President. The bank bases this speculation on Trump’s public support for cryptocurrencies, high inflation, larger fiscal deficit, and political pressure on the Federal Reserve, which could reduce the dominance of the U.S. dollar （USD） as a store of wealth.
According to Jefferies, Trump’s re-election could create a favorable environment for cryptocurrencies and related stocks, as his administration is likely to support blockchain technology and crypto innovation. Mathew Sigel, head of digital assets research at VanEck, noted that many companies highlighted by Jefferies are also tracked by the VanEck Digital Transformation ETF.
Beincrypto
Trump’s vocal support for cryptocurrencies and blockchain technology has been a defining feature of his leadership stance. His choice of a Bitcoin advocate as vice presidential running mate further boosts optimism within the crypto community. Nic Carter, founder of Castle Island Ventures, praised the choice, indicating a pro-tech and pro-American dynamism outlook.
With inflation remaining above the Federal Reserve’s 2% target, investors are increasingly turning towards alternative stores of value like cryptocurrencies. The prospect of hedging against inflation and currency devaluation through crypto investments is driving demand for digital assets, which could extend to crypto-related stocks.
Jefferies also identifies equities and gold miners as prime beneficiaries of a Trump presidency, given the anticipated reduction in USD dominance. Fiscal stimulus measures and political pressure on the central bank to address economic challenges could further enhance the appeal of cryptocurrencies as a hedge against macroeconomic risks.
解説
- Political Influence: The potential re-election of Donald Trump could significantly influence the cryptocurrency market. His pro-crypto stance and anticipated economic policies are likely to create a favorable environment for digital assets and related stocks.
- Investment Opportunities: Jefferies’ bullish outlook highlights the potential for growth in crypto-related stocks, particularly those that stand to benefit from reduced USD dominance and increased interest in alternative stores of value.
- Market Dynamics: Investors should consider the broader economic implications of a Trump presidency, including fiscal policies and inflationary pressures, which could drive demand for cryptocurrencies and related equities. Monitoring political developments and market trends will be crucial for making informed investment decisions.