Trump Administration’s Potential M&A Boost and its Implications for Cryptocurrency Markets
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Trump administration could boost M&A, benefiting crypto, says Bitwise CEO
The potential revival of massive mergers and acquisitions (M&A) under a Trump administration is likely to have a positive impact on the cryptocurrency market, according to Hunter Horsley, CEO at Bitwise Asset Management.
Horsley believes that an increase in corporate consolidation could push individuals towards decentralized systems like cryptocurrencies. He suggests that people may lose trust in large institutions as they become even more powerful and influential, leading them to seek alternative means of investment.
“I think it’s pretty likely that the Trump administration will revive M&A,” Horsley said. “And when you see concentration of corporate power, I believe it reinforces the idea that decentralized systems are preferable.”
M&A activity has been stagnant in recent years, with 2024 showing a slight increase compared to the previous year but still below pre-pandemic levels. However, the return of Trump as president could bring a change in regulatory policies and economic conditions, potentially sparking a surge in M&A deals.
Horsley points out that this trend may lead to the dominance of a few giant corporations, leaving smaller businesses struggling to keep up with their larger counterparts. This increased consolidation of power could see individuals seeking alternative investment options outside traditional institutions, which would benefit cryptocurrencies as they offer an uncorrelated asset class and provide a hedge against inflation.
“I think it’s pretty likely that the Trump administration will revive M&A,” Horsley said in an interview. “And when you see concentration of corporate power, I believe it reinforces the idea that decentralized systems are preferable.”
It is worth noting that previous administrations have not shown a significant correlation between M&A activity and crypto market performance. However, this development could potentially benefit cryptocurrencies as it would lead to further distrust in large corporations.
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Source: cryptobriefing.com
