Neoclassic Capital Co-Founder on How Trump’s Crypto Policies Could Impact the Market

On November 6, CNBC’s MacKenzie Sigalos spoke with Michael Bucella, Co-Founde and Managing Partner at crypto-focused investment firm Neoclassic Capital, on CNBC’s “Power Lunch” to discuss how the crypto market could be impacted by the incoming Trump administration.

Bucella explains that Donald Trump, who was initially not supportive of the crypto sector, has recently adopted a much friendlier stance. Over the past six months, Trump has pivoted, making several promises that appeal to crypto advocates. One of Trump’s prominent pledges involves removing SEC Chair Gary Gensler from his position, which Bucella believes could create a more favorable regulatory environment for the industry. According to Bucella, this potential leadership change has led to a rally in the stocks of companies like Coinbase and Robinhood, with Coinbase’s stock price surging by approximately 30%.

Bucella points out that another promise from Trump that has crypto enthusiasts excited is his commitment to support the Bitcoin mining industry. Bucella notes that Bitcoin miners are actively engaged in discussions with Trump, seeking to secure investment and policy support. If Trump follows through on his commitment to develop infrastructure for energy and transmission, Bucella suggests this could create the energy capacity needed to fuel the mining operations that underpin the Bitcoin ecosystem.

In July, Trump floated the concept of a national “crypto stockpile,” which, according to Bucella, would involve the federal government holding onto seized Bitcoin rather than auctioning it off as is currently done. Bucella sees this policy as a potential positive for the Bitcoin market, as it would reduce the available supply of Bitcoin, potentially increasing its value by curbing the frequency of government sell-offs.

Discussing broader crypto investment strategies, Bucella argues that while immediate market responses have shown an uptick, the real strength of crypto lies in the mid-to-long-term liquidity cycles. He states that crypto investment benefits from an economic environment with larger deficits and high liquidity:

“We’re in a very good position for liquidity cycles for crypto… for the next two cycles, so call it the next eight years.“

Featured Image via Pixabay