Bitwise CEO predicts Trump administration to boost crypto mergers

by

Hunter Horsley links corporate power consolidation to crypto demand.

According to Hunter Horsley, the CEO of Bitwise Asset Management, the economic strategies enacted by the Trump administration might significantly influence the cryptocurrency market.

In a recent tweet, Horsley pointed out that relaxing regulations on company mergers and acquisitions might enable powerful corporations such as Google or Amazon to grow even more, by making strategic purchases of other companies. Mergers and Acquisitions (M&As) involve the joining together of businesses, or one business buying another. This process frequently allows corporations to gain economies of scale, increase their market presence, or secure crucial resources.

The Trump administration might permit more mergers and acquisitions to take place. This means that large corporations, such as those with a market capitalization of $7 billion or more, could potentially expand further. For instance, Amazon could acquire Instacart, while Google might buy Uber. If these transactions occur, it’s possible that larger companies will grow even larger, and smaller ones may struggle to compete, leading to a decrease in the number of mid-sized corporations. This situation could lead to an acceleration of market consolidation.

— Hunter Horsley (@HHorsley) January 5, 2025

Horsley posits that the accumulation of power in centralized entities might stimulate the proliferation of decentralized systems, mirroring a fundamental principle of cryptocurrency: wariness toward centralized bodies. He is convinced that as big corporations expand their influence, the appeal for cryptocurrencies – which aim to provide an option beyond such institutions – may increase.

Large corporations such as Google and Amazon are growing more intrigued by blockchain technology and digital assets, exploring opportunities to break into the cryptocurrency sector. A service that illustrates Amazon’s foray into blockchain technology is Amazon Web Services’ (AWS) Amazon Managed Blockchain, which empowers businesses to establish and manage scalable blockchain networks. In essence, this move positions Amazon as a significant player in the burgeoning enterprise blockchain market.

Through partnerships with well-known blockchain projects and initiatives aimed at integrating blockchain technology into their cloud platform, Google has expanded its involvement in the cryptocurrency world. Now, businesses can leverage Google Cloud’s Blockchain-as-a-Service to develop and deploy decentralized applications.

These actions clearly showcase leading corporations employing blockchain tech to innovate their business strategies and also utilizing conventional mergers and acquisitions to broaden their influence. This approach ultimately accelerates the integration of distributed systems in a wider context.

Horsley’s comment emerges during a significant resurgence in the cryptocurrency market after Donald Trump’s latest election win. The crypto industry is generally pleased by Trump’s victory due to his business-friendly standpoint and policies perceived as advantageous for digital currencies and blockchain technology. These pro-crypto policies have ignited optimism in the market, with analysts suggesting that a substantial part of the growth can be linked to a more lenient regulatory environment under Trump’s leadership.

Following Donald Trump’s victory in the election, there has been significant expansion in the cryptocurrency market. A prime example of this growth is Bitcoin, which skyrocketed from around $69,000 on November 8, 2024, to over $100,000 by early December.

The primary factor fueling this rise is mainly due to political changes and the expectation of less restrictive policies, leading experts to predict a more favorable setting for digital currencies.

Specialists are of the opinion that this surge could be attributed to the change in political climate and the possible relaxation of restrictions, making conditions more conducive for digital currencies.

Bitwise’s CEO, Horsley, leads a firm specializing in cryptocurrency investments for over seven years now. This firm provides diverse offerings such as crypto-centric funds, ETFs, and more, aiming to give investors access to the dynamic crypto and Web3 sectors.

As per Horsley’s perspective, the impact of significant market leaders, combined with potential regulatory shifts, may significantly influence the landscape of both digital assets and traditional finance by 2025. This dynamic period could stimulate a surge in mergers and acquisitions as well as the cryptocurrency industry, making it an intriguing time for both corporate dealings and the crypto market.

Read More

2025-01-06 04:22