In Turkey, a survey by the crypto exchange Paribu reveals a growing preference among investors for cryptocurrencies over traditional assets like real estate and stocks. Meanwhile, in the United States, the election of Donald Trump is sparking optimism among industry analysts who anticipate a friendlier regulatory environment for crypto. Trump’s pro-crypto campaign promises and potential changes in US policy could unlock new capital flows into the sector, although analysts caution that congressional cooperation will be crucial for lasting change.
Bitfinex Analysts Predict “New Wave of Hope” for Crypto Markets Following Donald Trump’s Presidential Election
With Donald Trump set to take office as the next president of the United States, analysts at cryptocurrency exchange Bitfinex anticipate a “new wave of hope” for crypto markets. This sentiment is grounded in expectations that the Trump administration will adopt a friendlier stance toward the Web3 and cryptocurrency sectors, potentially easing regulatory constraints that have hindered the industry’s growth over the past several years. Bitfinex analysts suggest that Trump’s election could unleash a significant influx of capital into the cryptocurrency ecosystem and foster a less adversarial approach from federal agencies.
The optimism from Bitfinex analysts is part of the broader sentiment within the industry that a Trump administration could provide regulatory relief for digital assets. The analysts predict that in the short term, capital earmarked for crypto ventures will be unlocked, giving investors and entrepreneurs fresh momentum to develop blockchain-based projects. They specifically noted that a shift in the approach of the Securities and Exchange Commission (SEC) could open new opportunities in the crypto space, stating:
“We expect that in the short term, a significant amount of capital will now be unlocked for crypto ventures. In addition, there is likely to be an impact on the approach that has been taken by the SEC, which many believe to have been hostile to the crypto industry.”
Over the last few years, the SEC has intensified its scrutiny of digital assets, with several high-profile cases against major crypto exchanges and token issuers. The industry has faced substantial challenges from regulatory ambiguity and enforcement actions that many perceive as attempts to stifle innovation in blockchain technology. Trump’s administration, however, is expected to adopt a more open approach that could foster an environment where digital assets are treated with fewer restrictions, particularly as Web3 and blockchain technologies gain traction among global investors.
Donald Trump’s latest stance on cryptocurrency marks a striking departure from his previous views. During his first term as president, Trump publicly criticized Bitcoin and other digital assets, calling them speculative and expressing skepticism about their role in the economy. In 2019, he took to X to voice his disapproval, declaring, “I am not a fan of Bitcoin and other cryptocurrencies.” However, Trump’s recent shift in tone has surprised many in the crypto community.
This change appears to align with a broader pro-crypto trend within the Republican Party, with high-profile leaders increasingly expressing support for digital assets and blockchain innovation. Trump’s campaign platform included promises to cryptocurrency advocates, such as supporting Bitcoin miners, creating a strategic Bitcoin reserve, and establishing a crypto advisory council to shape federal policy. Perhaps most notably, he pledged to remove Gary Gensler, the current chairman of the SEC, who has been at the center of crypto-related enforcement actions.
Trump’s stance on crypto has garnered significant support from prominent figures in the Web3 and tech sectors as well. Over the past two years, the industry has faced what it perceives as excessive scrutiny and unclear regulations from the SEC and other agencies, causing frustration among crypto investors, businesses, and advocates. As a result, Trump’s promises to reduce regulatory obstacles and fire Gensler have resonated with those who believe that a less restrictive regulatory environment could pave the way for innovation and job creation in the blockchain sector.
Additionally, the former president’s promise to establish a crypto advisory council suggests a commitment to developing a more sophisticated, well-informed policy framework for digital assets. The advisory council would likely include crypto industry experts, providing an opportunity for the industry’s insights to influence policy decisions, marking a significant shift from the existing regulatory paradigm, which has often been characterized by contentious debates and legal challenges.
Despite the optimism surrounding Trump’s pro-crypto platform, much of his agenda will require congressional support to come to fruition. For instance, creating a national Bitcoin reserve or establishing a crypto advisory council would need legislative approval. While Republicans have gained control of the Senate, the balance of power in the House remains undecided, with final results from several races still pending. The party that controls the House will play a pivotal role in determining the legislative agenda and could impact Trump’s ability to push forward his crypto-friendly policies.
Bitfinex analysts also noted that immediate policy changes are unlikely, as several complex issues require resolution, including the fundamental question of whether certain cryptocurrencies should be classified as securities. They cautioned that while the outlook may appear brighter, crypto regulation involves numerous stakeholders and legal nuances that cannot be quickly addressed.
“We do not expect any action in the short term, particularly as multiple complex issues need to be resolved, including whether certain crypto assets should be classified as a security,” noted the Bitfinex analysts.
A Pro-Crypto Congress: What This Could Mean for the Industry
The possibility of a Republican majority in both chambers of Congress could further bolster pro-crypto sentiment in Washington. A pro-crypto Congress would likely work with the administration to establish clear regulatory guidelines for digital assets, potentially fostering a more supportive climate for investors and developers. Industry advocates hope that new legislation could address some of the longstanding issues in crypto regulation, such as clarifying the classification of tokens, streamlining compliance requirements, and protecting consumer interests without stifling innovation.
A Republican-majority Congress might also support bills aimed at regulating digital assets without the strict oversight that has characterized recent SEC policies. Some Republican senators have already introduced bills that emphasize regulatory clarity and respect for innovation. If passed, these bills could create a friendlier landscape for crypto ventures, reducing the legal uncertainties that have deterred investors.
The potential shift in the regulatory landscape could have far-reaching effects on the US crypto market. Many American crypto firms have voiced concerns about regulatory uncertainty, which has led some companies to consider relocating to more crypto-friendly jurisdictions. A more supportive US regulatory environment could encourage companies to stay within the US, bringing with them jobs, talent, and investment. It could also encourage more venture capital firms to increase their crypto allocations, potentially fueling a wave of innovation across Web3, DeFi, NFTs, and other blockchain-powered sectors.
While the outlook appears optimistic, challenges remain. A shift in administration does not guarantee regulatory overhaul, and the crypto industry may still face hurdles from various agencies and state regulators. Additionally, implementing Trump’s campaign promises will require navigating political divides and balancing public opinion, which remains mixed on the subject of digital assets.
Some financial analysts and economists argue that loosening regulations could increase risks, especially if investors lack adequate protections. Furthermore, Trump’s pledges to support Bitcoin mining and establish a Bitcoin reserve could face opposition from environmental groups and policymakers concerned about the energy-intensive nature of Bitcoin mining.
Survey Shows Cryptocurrencies Overtake Real Estate and Stocks Among Turkish Investors in 2024
In related news, a recent survey conducted by the cryptocurrency exchange Paribu reveals a shift in Turkish investor sentiment toward cryptocurrencies over traditional investments like real estate and stocks. This shift signals a growing appetite for digital assets in a country with a complex economic landscape and a unique perspective on finance. The “2024 Cryptocurrency Awareness and Perception Survey” not only captures this shift in preference but also provides insights into the motivations and barriers surrounding crypto adoption in Turkey.
Paribu’s “2024 Cryptocurrency Awareness and Perception Survey” sought to measure awareness, perception, and adoption trends related to cryptocurrencies in Turkey. The survey featured responses from 2,002 individuals familiar with cryptocurrency and 541 active crypto traders, aiming to deliver a well-rounded view of crypto sentiment in the country. From awareness to expectations, motivations, and potential barriers, the survey sheds light on the evolving attitudes and behaviors of Turkish investors as they navigate the dynamic world of digital assets.
A particularly notable finding of the survey is that cryptocurrencies have now surpassed real estate as a preferred investment choice among many Turkish investors. Gold, historically a go-to asset in Turkey for hedging against inflation and currency volatility, remains the top choice for 56% of participants. Foreign currency investments follow closely, indicating that traditional financial instruments still hold considerable appeal in the Turkish market.
However, cryptocurrency ranked third, with nearly 30% of participants indicating it as their preferred investment choice. This represents a significant shift from 2023, when real estate was chosen by 30% of respondents, while crypto lagged behind. By 2024, however, real estate preference dropped to 26%, leaving crypto in the lead. Stocks and mutual funds have also gained traction, with their preference rising from 13% in 2023 to 18% this year, but they still fall short compared to crypto.
Nergis Nurcan Karababa, research content manager at Paribu, highlighted that the speed, accessibility, and high return potential of cryptocurrencies have been instrumental in fostering greater interest. Unlike traditional investments, crypto transactions offer nearly instantaneous transfers, enhanced accessibility, and the allure of significant returns within short timeframes.
“Compared to traditional financial products, crypto assets may experience much higher rates of adoption. Individuals are motivated to step into this world now, anticipating more widespread use in the future,” said Karababa. She also noted that the increasing presence of institutional players in the crypto space further amplifies this trend, as institutional interest often signals trust and viability to individual investors.
Another crucial finding from the survey is the nearly universal awareness of cryptocurrencies in Turkey, which reached a staggering 99% in 2024. This is a remarkable rise from just 16% awareness in 2020, a figure that surged to 70% in 2021 amid a historic bull run, culminating in the crypto market’s all-time high valuation of $3 trillion. This growth trajectory continued, with awareness increasing to 77% in 2022 before achieving near-universal recognition in 2023 and 2024.
Despite this, blockchain technology—the foundation on which cryptocurrencies operate—remains less understood. Approximately 72% of survey respondents admitted unfamiliarity with blockchain. Even among those aware of it, many view blockchain as a complex technical infrastructure rather than as a practical tool. Karababa explained that this divide stems from the disparate visibility of cryptocurrencies, which are presented as accessible investment options, versus blockchain technology, which is perceived as more esoteric and technical.
“The disparity in awareness likely stems from the distinct positioning and visibility of cryptocurrencies versus blockchain technology in the public sphere,” Karababa remarked. She added that while some blockchain applications are gaining traction, such as in logistics and finance, the technology remains relatively niche, limiting its resonance with the general public. Many Turks, therefore, engage with crypto assets despite limited knowledge of the underlying technology that powers them.
Turkey’s economic environment has also played a significant role in shaping crypto adoption. The Turkish lira has experienced substantial devaluation against major global currencies in recent years, leading many citizens to seek alternative ways to protect their wealth. Inflation, which has been a persistent issue, further adds to the appeal of assets like gold and, increasingly, cryptocurrencies. While crypto assets are known for their volatility, their potential for high returns has attracted those willing to take on higher risk in exchange for the possibility of substantial gains.
Institutional Interest and the Future of Crypto in Turkey
Another factor influencing Turkish investors is the growing involvement of institutional players in the crypto space. With major financial entities exploring crypto-related ventures, many Turkish investors see institutional interest as a validation of cryptocurrency’s legitimacy and future potential. As more businesses and governments globally experiment with blockchain and crypto applications, Turkish investors might anticipate the normalization of crypto assets and increased integration with the traditional financial system.
This is particularly pertinent in the Turkish market, where Tether, a prominent stablecoin, has proposed the issuance of boron-backed tokens in collaboration with Turkey’s government. This kind of government-corporate collaboration could pave the way for increased adoption, especially if regulatory frameworks begin to support or even incentivize digital asset usage in daily transactions.
While interest in cryptocurrencies is high, the Paribu survey also highlighted several barriers. The most significant obstacles include a lack of regulation, the risk of scams, and the technical complexities associated with managing digital wallets and understanding blockchain. The regulatory landscape, in particular, remains uncertain, with few clear guidelines around cryptocurrency taxation, compliance, and consumer protections.
Karababa noted that despite these challenges, many individuals view crypto as an accessible investment tool compared to traditional financial products, which often require significant starting capital or entail complex bureaucratic processes.
Source: https://coinpaper.com/5958/friendlier-crypto-regulations-incoming-after-trump-election-victory-bitfinex