Trump’s State of the Union address: Has the crypto market outlook changed for the better?

Donald Trump recently gave a speech focusing on a variety of different issues such as healthcare, gender equality, and the job market. But what will the impact be on the cryptocurrency market? Has the market outlook changed for the better?

If you watched Tuesday’s State of the Union address by President Trump, you may have been pleasantly surprised.

Out of the blue, Donald Trump gave a positive speech including reference to the increasing number of women going into the job market, which has led to a 58% dominance of females in US companies for the first time in history. In addition, Mr Trump spoke about the absolute need to lower medicine prices and to strengthen the fight against HIV.

Of course, he did mention a few times that the reduction of criminality rates in San Diego was due to “improvements on the boarder wall and patrols.”

Honestly though, I was quite impressed. I was watching a completely different man – someone who’s goal was to bring together both Republicans and Democrats on matters relating to multiple sectors (like healthcare and gender equality) rather than focusing on the much-publicised divisions and arguments over his infamous wall.

If I had to chose one word to describe the event, “unity” would be it.

Change of approach

I wasn’t the only one noticing the sudden change in Trump’s behaviour. Yesterday, eToro’s senior analyst Mati Greenspan noted in his daily newsletter:

“This is a stark contrast to what we’re used to hearing from the controversial President Trump. Many were expecting that he might use the speech to declare a state of emergency in order to procure funding for his Southern Border wall but instead, he made a very pragmatic case, backed by logic, statistics, and expert testimonies, for why it is necessary. Nobody could have seen this coming.”

What I personally expect is that the US government will work together and solve the small crisis at hand before the next shutdown.

I’m not saying I personally agree with President Trump’s policies (for example, I’m a hugely against his unfriendly stance on environmental issues), but independent of how I feel about the man, his speech showed immense focus on promoting better trade policies with China and to make serious improvements to the job market.

The impact on the cryptosphere

Although there is no direct relationship between Trump’s policies and the cryptocurrency markets, a huge portion of investors and traders, miners, and other crypto-related businesses are based in the US.

I argue a positive outlook in the short term could lead to increased buying pressure on price. If the stock markets recover from last month’s downtrend, we will see house prices stabilising and construction company stocks reversing the negative trend, meaning the economy gains a small boost and people have more money available to invest in cryptocurrencies.

Remember how the S&P500, Nasdaq, and Dow Jones behaved during the 2017 cryptocurrency bull run?

It was booming as well.

With a strong US economy, I hardly see a scenario where investors switch from traditional stock into cryptocurrencies in full force.

But unless there is a USD crisis, cryptocurrency prices benefit considerably more from a general positive outlook on traditional markets.

Let’s hope the downtrend ends in 2019.

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