Trump’s election victory has sparked a surge in online searches, signaling renewed interest from retail investors in digital assets.
Bitcoin Search Spike After Trump’s Win Suggests Retail Investor Interest
Since Donald Trump was elected, cryptocurrency interest has surged, with Bitcoin climbing to record highs amid his pro-crypto campaign promises.
Analysts suggest that the increase in search activity and market inflows points to a fresh wave of interest from retail investors and potentially new buyers entering the crypto space.
Ryan Chow, CEO of the Bitcoin staking platform Solv Protocol, remarked that Trump’s win could act as a “major catalyst for launching the next bull market,” expressing confidence that retail interest will grow: “Bitcoin’s new all-time high is a compelling advertisement for crypto.” Retail investors, essential in past Bitcoin bull runs, have remained quiet this cycle, with institutional players taking a leading role since the SEC’s approval of spot Bitcoin ETFs earlier in the year.
Coinbase recently reported a revenue dip, partly due to low retail trading, while Bitcoin Google searches hit a yearly low in October, indicating retail investors had not yet embraced the bull market.
PayPal, in a recent SEC filing, also noted an 11% decline in crypto assets held on behalf of its customers, suggesting a pullback from retail traders.
Crypto analyst Noelle Acheson, in her Crypto is Macro Now newsletter, explained that retail investors are typically “late adopters” who react to headlines and popular sentiment. She suggested that the crypto cycle is in its early stages and predicted that retail activity would peak as interest builds.
Crypto educator Chris Dunn told Cointelegraph that “Trump’s win is a narrative driver” for Bitcoin, pushing it toward new highs. A breakthrough above $75,000 could reignite retail investor interest.
Within 24 hours of Trump’s election, Google searches for “Bitcoin” surged, pointing to a potential shift in retail traders’ mindset.
Dunn emphasized that Trump’s victory has renewed optimism for crypto in the U.S., saying, “People like to join the trend when there’s a compelling reason.” He predicts retail investors will first gravitate toward Bitcoin, followed by smaller altcoins as the anti-crypto sentiment appears to wane.
Despite favorable conditions, retail investors haven’t yet fully embraced the crypto market, likely scarred from past downturns.
Retail’s Cautious Return to Crypto
Retail investors, often arriving late to rallies, have typically become liquidity providers for early adopters. Dunn noted they’re still cautious after the “FTX implosion” and skeptical due to perceived anti-crypto stances from figures like Elizabeth Warren and Gary Gensler.
The collapse of FTX exposed systemic risks in crypto governance, causing a substantial loss of confidence. Former FTX CEO Sam “SBF” Bankman-Fried went from being hailed as a “white knight” to one of the industry’s biggest cautionary tales.
However, Trump’s win could ease U.S. retail investors’ regulatory fears, as he has promised to replace Gensler with a more crypto-supportive figure. Trump also vowed to curb Warren’s influence on Bitcoin holders, though this is beyond the direct power of the presidency.
With Gensler’s SEC tenure nearing its end, and Republicans controlling the Senate after Warren’s recent reelection, her capacity to influence crypto legislation may be limited.
While market sentiment fades over time, Trump’s victory and Bitcoin’s new all-time highs could inspire retail investors to overcome previous setbacks and reenter the crypto market with renewed optimism.
