Donald Trump's impact on the crypto sphere is divisive. While some see him as an unexpected ally, others fear his long-term effects. With Bitcoin-friendly promises and political uncertainties, his market influence remains powerful yet controversial. Dive into the analysis.
Since the election of President Trump, investors were hopeful: the end of the Gensler era at the SEC, promises of financial deregulation, and a declared war on anti-crypto standards. However, contrary to expectations, the first 100 days of this presidency were marked by a significant crash in the markets. The S&P 500 dropped by 7.5%, while Bitcoin lost over 10% in value, hovering around $95,000. Overall, the crypto market capitalization plunged by 15%, with over $530 billion evaporated.
Bitcoin, Ethereum, S&P 500, NASDAQ 100, and Gold in a 100-day comparison. Source: Tradingview
Altcoins are the primary victims: on average, their capitalization melted by nearly 30%. This is indicative of a structural distrust and the resurgence of Bitcoin’s dominance. It now stands at 63.6% – an unmatched peak in four years.
Crypto market evolution without Bitcoin. Source: TradingView
Historically, a new White House term often ushers in a phase of stability. However, Trump’s aggressive strategy – especially on the monetary and commercial fronts – seems to have instilled panic. The president demonstrates an interventionist and short-term vision, penalizing risky assets… including Bitcoin.
“It makes sense to make the most controversial decisions early in the term, to smooth the way before the upcoming elections,” analyzes Thomas Mayer, economist at the Flossbach von Storch Research Institute.
Despite market turbulence, significant regulatory progress has been made. With Mark Uyeda now heading the SEC in place of Gary Gensler, the stance of US authorities on crypto-assets has drastically changed. This includes the end of lawsuits against Coinbase, Ripple, or OpenSea, and the establishment of a crypto task force led by Hester Peirce (“Crypto Mom”). There is also a massive influx of ETF applications for XRP, Solana, Dogecoin, and other altcoins.
Additionally, Trump signed a presidential decree creating a “Bitcoin Strategic Reserve“, a strong signal of BTC recognition as a state asset. A symbolic move in the short term, yet it holds major institutional potential if materialized through regular and visible purchases by the US Treasury.
Some pro-crypto signals from Trump have been well-received by Bitcoin maximalists. However, other questionable aspects of his policy worry serious industry players. This includes his personal involvement in the launch of a memecoin before taking office, casting doubt on presidential ethics.
The renewed trade war and pressures on the Fed could paradoxically play in favor of Bitcoin. With rising bond yields and abyssal public deficits ($9.2 trillion to be refinanced in 2025), Trump aims to steer the rate policy towards easing.
Bitcoin, classified as both a store of value and a growth asset, embodies more than ever a defensive alternative in a disrupted financial world. If Trump manages to combine regulatory stability and economic stimulus, the cryptosphere could emerge strengthened. But if speculative populism outweighs strategy, the “Bitcoin president” could precipitate a new crypto winter… as early as 2025. If you wish to invest in Bitcoin and other cryptos, you can do so easily via Bitget. Right now, a generous welcome offer awaits you.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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