Key Points
- President Trump’s promises to make the U.S the ‘crypto capital’ are under scrutiny as investors anticipate his next moves.
- Trump’s proposed crypto regulations and potential Bitcoin reserve are seen as crucial to stabilizing the volatile crypto market.
Just a week into 2025, the crypto market is already experiencing significant volatility. Investors are keenly watching President Trump’s next moves, given his promises to transform the U.S into the ‘crypto capital’. It’s evident that it’s time for these crypto pledges to move from mere promises to tangible actions.
Political Promises and Crypto
With less than 10 days until President-elect Trump returns to the White House, it’s his focus on the burgeoning crypto market that provided him a decisive edge in his campaign. This focus led to a massive bull run in the market, with billions of dollars surging into it. The crypto community has shown strong support for Trump’s campaign and is now expecting to see some action.
First on Trump’s agenda is an executive order to establish a strategic Bitcoin reserve, shifting from a bold idea to an economic necessity. Additionally, Trump is advocating for clearer Bitcoin regulations centered on buyer protection. He’s already shortlisted potential candidates to lead the Commodity Futures Trading Commission (CFTC), following the departure of former Chair Rostin Behnam.
Challenges Ahead
However, the path ahead is not without challenges. The crypto market saw a staggering $380.40 million vanish in the last 24 hours. Bitcoin’s recent plunge from $102k to $91k in less than three days illustrates the market’s volatility. Investors were caught by surprise, facing substantial losses.
All eyes are now on Trump and his promised crypto regulations. His ongoing feud with the Federal Reserve has sparked investor hope for a potential interest rate cut. However, Trump’s tax and spending cuts could leave the government short on cash, making it harder to manage the $36 trillion national debt. This could force a rethink on increasing borrowing costs, potentially sending fresh shockwaves through the crypto market.