Jefferies, a Wall Street investment bank, has pointed out that former President Donald Trump’s open support for Bitcoin and cryptocurrencies, along with expected higher inflation and fiscal deficits, could weaken the dominance of the US dollar as a store of wealth. This shift in the financial landscape could greatly benefit crypto-related stocks and gold miners, according to analysts at Jefferies.
As Trump’s chances in the upcoming 2024 presidential election are on the rise, his policies regarding the crypto sector are gaining more attention from investors. The Republican party has also shown support for Bitcoin rights in its new platform, aligning with Trump’s stance.
Jefferies highlighted five key policies proposed by Trump that could have a significant impact on the equities market, particularly in terms of benefiting crypto-related stocks. These policies include extending tax relief measures, reducing corporate tax rates, increasing tariffs on Chinese goods, rolling back climate initiatives, and reducing involvement in global conflicts.
In light of these policies, Jefferies identified several companies that could potentially benefit, such as Coinbase, MicroStrategy, CME Group, Square, Paypal, Marathon Digital, Riot Platforms, Cipher Mining, and others. These companies are directly involved in Bitcoin and crypto or have a significant presence in the industry, making them well-positioned to capitalize on the changing financial landscape.
Investors are advised to stay informed and adjust their strategies accordingly to navigate the potential shifts in the market. With the expected support for crypto assets under a Trump administration, there could be substantial growth opportunities in the crypto sector for those who are prepared to take advantage of them.