Donald Trump’s victory in the presidential elections this Tuesday represents a relief for the entire Cryptocurrency universe. Both retail investors and holders and crypto entrepreneurs celebrate the victory of the Republican party. From the Bitcoin Mining industry there are also high expectations about a more positive era for the crypto business as a whole.
Although the United States is the epicenter of global digital mining, this activity is restricted to a few specific states. In other federal entities there is a hostile position towards business, which is protected by the debatable environmental argument. According to environmental lobbies, the mining industry is a source of pollution due to its high energy consumption.
In some regions, local Republican governments are promoting decrees called the right to mining to confront the onslaught. If the Trump administration, which begins on January 20, 2025, keeps its promises, then the mining sector would have greater possibilities of expansion throughout the United States.
In addition, the plan would be put into practice that the massive expansion of mining would cause enormous demand for energy that would stimulate the expansion of the electrical grid. As a result of the latter, progress would be made in environmental terms towards a clean generation network and lower bill costs. This leads the Bitcoin mining industry to view Trump’s victory very positively.
Bitcoin mining stocks rise sharply this Wednesday. Source: Companiesmarketcap.com
The response of Bitcoin mining stocks
A few minutes before the opening of operations on the stock market, digital mining stocks experience a sharp rise. The latter reveals the enormous enthusiasm of investors in this sector regarding the new political panorama that is opening up in the United States.
MARA shares show a rise of +8.93% and are close to canceling the losses of the last 5 days, which fell to -2.2%, according to Companiesmarketcap. Meanwhile, RIOT shares also reflect a powerful rise exceeding +12%. The firm has already comfortably overcome recent losses and reaches +4.3% in 5 days.
Other companies such as Cipher Mining exceed +18%, while Hut 8 approaches 16%, also within 24 hours.
Since the halving occurred last April, the mining business has been in a weak position in terms of profits. The stagnation of BTC and operating expenses kept the cost of production against the BTC spot price in an undesirable relationship.
If all goes according to investors’ plans, Bitcoin could set new all-time highs above $100,000 in 2025.
The latter would cause a huge leap in productivity for the Bitcoin mining industry. In addition, it would favor the security of the network, since it would stimulate massive connections of mining equipment.
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