Bitwise CEO predicts Trump administration to boost crypto mergers

Hunter Horsley attributes institutional power consolidation to crypto demand.

Hunter Horsley, CEO of Bitwise Asset Management, suggested that the Trump administration’s economic policies could have a major impact on the cryptocurrency industry.

In a recent tweet, Horsley noted that potential deregulation of mergers and acquisitions could allow large companies like Google or Amazon to expand further through strategic acquisitions. Mergers and Acquisitions refer to the consolidation of companies through the merger of businesses or the acquisition of one company by another. This process often helps companies achieve economies of scale, expand market share, or acquire critical assets.

The Trump administration may unravel mergers and acquisitions.

Large companies (mag 7 etc.) can finally sustain their market capitalization. Amazon may acquire Instacart. Google may buy Uber. etc etc

The big one can grow, the middle one can shrink.

I think it will go faster if this happens…

— Hunter Horsley (@HHorsley) January 5, 2025

Horsley argued that this concentration of power could lead to the adoption of decentralized systems, which is in line with the core principle of cryptocurrency: skepticism towards centralized organizations. He believes that as large corporations gain more control, demand for cryptocurrencies designed to provide an alternative to such institutions may increase.

Corporate giants such as Google and Amazon are becoming increasingly interested in blockchain technology and digital assets as they seek to enter crypto markets. One example of blockchain-related services offered by Amazon Web Services is Amazon Managed Blockchain, which allows companies to create and control scalable blockchain networks. With this action, Amazon is establishing itself as a major force in the expanding enterprise blockchain market.

Google has also increased its presence in the cryptocurrency industry by forming strategic alliances with leading blockchain startups and participating in campaigns to incorporate blockchain technology into cloud infrastructure. Blockchain as a service is now available on Google Cloud, allowing companies to build and implement decentralized applications.

These initiatives show how large companies are using blockchain technology to diversify their business models, while also expanding their reach by leveraging traditional mergers and acquisitions, thereby encouraging the adoption of decentralized systems.

Horsley’s statement comes amid a major recovery in the cryptocurrency market following the recent re-election of Donald Trump. Trump’s victory was welcomed by many in the cryptocurrency industry, given his pro-business stance and policies seen as supportive of digital assets and blockchain technology. These policies fueled the upward trend in the market; Experts attributed much of this increase to a more positive regulatory approach under the Trump administration.

Since Trump won the election, the cryptocurrency market has seen significant growth; The biggest example of this is Bitcoin, which rose from around $69,000 on November 8, 2024 to over $100,000 in early December.

Bitcoin 1D chart | Source: crypto.news

This increase was largely due to political changes and the expectation of looser regulations that experts believe will create a more conducive environment for digital assets.

Experts also believe that this rise is due to political change and potential loosening of regulations that could create a more favorable environment for digital assets.

Horsley is the CEO of Bitwise, an investment firm that has focused exclusively on cryptocurrency investments for the past seven years. The company offers a range of products, including crypto-focused funds, ETFs and others, designed to give investors access to the crypto and Web3 markets.

According to Horsley, the influence of major market players combined with regulatory changes could shape the future of both digital assets and traditional financial systems in 2025, making it an exciting time for both M&A activity and the cryptocurrency industry.