President Trump Boosts Crypto Speculation as Ethereum Wallet Holdings are Released

In a surprising turn of events, former President Donald Trump has emerged as a vocal supporter of the cryptocurrency industry, with his recent embrace of Bitcoin and other digital assets sparking a wave of speculation and investment. As the U.S. presidential election draws near, Trump's pro-crypto stance has sent shockwaves through the market, with Bitcoin and Ethereum leading the charge.

The Ethereum Foundation (EF) recently released its annual financial report, revealing substantial holdings in Ethereum (ETH) and other crypto assets. As of October 31, 2024, the EF disclosed that its treasury holds approximately $970.2 million, with $788.7 million in crypto assets and $181.5 million allocated to non-crypto investments and assets. Notably, nearly 99.45% of the EF's crypto holdings are in Ethereum (ETH), representing 0.26% of the total circulating supply of ETH.



Trump's pivot from crypto skeptic to crypto cheerleader has left a big mark on the cryptocurrency industry. His embrace of the community has helped push the price of Bitcoin toward a new all-time high and brought in hundreds of millions of dollars across prediction markets and memecoins. In the battle between Republican candidate Donald Trump and Vice President Kamala Harris, the decentralized prediction platform Polymarket has generated a total betting volume of over $3 billion on the winner alone.



Trump's crypto pivot began in May when his campaign started accepting crypto as a form of donation, marking the first time a major U.S. presidential nominee embraced cryptocurrency for donations. In June, Trump met with executives from various bitcoin mining companies, suggesting that bitcoin mining might be the "last line of defense against" a central bank digital currency. Trump then chose Sen. JD Vance (R-Ohio) as his running mate in July, a Republican seen as favorable to the crypto industry and critical of the U.S. Securities and Exchange Commission.

In August, Trump announced that Cantor Fitzgerald Howard Lutnick would help lead his transition team if he became president again. The latter has been described as a "big crypto bull," and Cantor Fitzgerald has been a custodian for Tether since late 2021. During a campaign stop, Trump visited PubKey Bar in New York City and made what's believed to be the first bitcoin purchase ever by a U.S. president, has promoted Bitcoin-themed sneakers and even wished a happy 16th birthday to Bitcoin.

Trump's most impactful moment with the industry occurred on July 27, when he gave a keynote speech at Bitcoin 2024 in Nashville—one of the premier conferences of the year. There, he promised to end "Operation Chokepoint 2.0" and other anti-crypto policies, and he also drew huge cheers for promising to replace Gensler if he's elected.

"It will be the policy of my administration...to keep 100% of all the bitcoin the US government currently holds or acquires into the future," Trump said in his address. "This will serve in effect as the core of the strategic national bitcoin stockpile...It's been taken away from you."



The Republican candidate's embrace has given way to the so-called "Trump trade" narrative, which essentially says that a Trump win will lead to a rise in the price of Bitcoin and other cryptocurrencies. The "Trump trade" narrative and favorable Q4 seasonality create a perfect storm for Bitcoin, promising an exciting period ahead despite potential price volatility leading into the election.

Analysts at Bernstein expect Bitcoin could break all-time highs and reach $80,000 to $90,000 should Trump win in the run-up to inauguration day on Jan. 20, 2025. Meanwhile, JPMorgan analysts say a Trump win could drive more retail demand for Bitcoin.

In conclusion, Trump's embrace of the crypto community has sparked a wave of speculation and investment, with Bitcoin and Ethereum leading the charge. As the U.S. presidential election approaches, the crypto market remains volatile, but the potential for further growth and adoption is undeniable. Investors should stay informed and consider the potential impact of Trump's policies on the crypto market as they make investment decisions.