According to James Butterfill, CoinShares’ Head of Research, Donald Trump’s administration is expected to create a more supportive environment for Bitcoin’s growth and adoption.
In a blog post published on Wednesday, Butterfill highlights Trump’s potential introduction of the Bitcoin Act as a key development, noting that the legislation would position Bitcoin as a strategic reserve asset, with plans for the government to acquire 5% of the total Bitcoin supply. The CoinShares researcher indicates that this move would elevate Bitcoin to a status comparable to gold within national reserves.
In his analysis, Butterfill points to anticipated changes in cryptocurrency regulation, with the researcher emphasizing Trump’s critical stance toward SEC Chairman Gary Gensler and the likelihood of more crypto-friendly leadership at the regulatory agency. The researcher also notes significant campaign contributions from crypto entities, with Coinbase, A16Z, and Ripple ranking among the top donors, potentially influencing future crypto legislation.
On fiscal policy, Butterfill reports that Trump plans to collaborate with Elon Musk to reduce government spending, with Musk potentially leading a new Department of Government Efficiency (DOGE) aimed at cutting $2 trillion in federal expenditures. The CoinShares analyst suggests this fiscal conservatism, combined with an expected looser monetary policy, could benefit Bitcoin as a hedge against traditional economic risks.
Butterfill observes that institutional crypto adoption remains low despite record inflows of $29 billion this year. However, the researcher predicts that Trump’s policies could help normalize crypto ownership and attract more institutional investors to the space.
In his conclusion, Butterfill forecasts that the combination of potential legislative support through the Bitcoin Act, crypto-friendly regulation, and favorable macroeconomic conditions under Trump’s administration could create an environment conducive to Bitcoin’s growth. He says that the next four years could see unprecedented levels of institutional and government support for Bitcoin, potentially strengthening its position in global finance.
At the time of writing (9:50 a.m. UTC on November 7), Bitcoin is trading at around $74,981, up 2.1% in the past 24-hour period.
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