Key Points
- Investors are keenly watching Trump’s next moves regarding his promises to make the U.S the ‘crypto capital’.
- Trump’s focus on the crypto market played a significant role in his election victory and has sparked a massive bull run.
A week into 2025, and the crypto market is already seeing significant volatility. Investors are aligning their strategies with the anticipated moves of President-elect Trump.
His promises to transform the U.S into the ‘crypto capital’ have been well-publicized, and it’s time for these pledges to be translated into action.
The Crypto Promise
With less than 10 days until Trump returns to the White House, his focus on the burgeoning crypto market has been a major factor in his victory. This focus resulted in a massive bull run, breaking psychological barriers and attracting billions of dollars into the market.
The crypto community backed Trump’s campaign and now, they are expecting to see some action.
One of the first items on the agenda is an executive order to establish a strategic Bitcoin reserve. This is quickly shifting from a bold idea to an economic necessity. Trump is also pushing for clearer Bitcoin regulations focused on buyer protection.
To make this happen, potential candidates to lead the Commodity Futures Trading Commission (CFTC) are already being considered.
The Urgency
The urgency is due to the recent volatility in the crypto market. In just the last 24 hours, $89.30 million in BTC long positions were liquidated. The crypto market saw a staggering $380.40 million vanish.
BTC’s latest plunge from $102k to $91k in under three days shows how wild the volatility has become.
Investors are now looking to Trump and his promised crypto regulations. His escalating feud with the Fed has sparked investor hope. There are speculations that an interest rate cut could be on the way.
However, Trump’s tax and spending cuts risk leaving the government short on cash, making it even tougher to manage the $36 trillion national debt. This could force Trump to rethink increasing borrowing costs, which might send fresh shockwaves through the crypto market. His decisions now extend far beyond crypto.
