Will Bitcoin Keep Soaring Under President Trump?

We are now moving in a completely different direction, at least in the crypto industry under the new pro-crypto government.

There is some huge news surrounding the new president of the United States, Donald Trump. This news promises to change the crypto industry forever. Since the election, the price of Bitcoin and other popular cryptocurrencies has risen. Moreover, days before the inauguration, Bitcoin hit an all-time high of $109,400, which made crypto enthusiasts even more excited.

Now, with Donald Trump returning to the White House, how will the new pro-crypto policies impact Bitcoin’s trajectory? Will this be the biggest bull market we’ve ever seen in Bitcoin history? Or, will the hype behind crypto quickly settle after a few months?

Crypto Policy Changes Under Trump

In order to find out whether the price of BTC will soar once again, we need to go through some of the changes that we expect to happen under Trump. During his first term, many of Trump’s economic policies were marked by tax cuts, deregulation, and a focus on economic growth.

So, what if he still has the same approach?

Well, if he continues with the same approach, boosting the economic power of people and companies, we might see the biggest bull run in Bitcoin’s history.

– Advertisement –

Why? Well, we’ve been under a manipulative and hard-flowing market for years now, battling inflation, and the government tried to stop it by raising interest rates. Now, the government is cutting interest rates to stimulate the economy, which means more money will go to crypto.

As Trump goes into office, it seems like the economy is starting to recover, which has made this pro-crypto government pick the perfect timing.

Regulatory Uncertainty

When it comes to crypto, regulation is the elephant in the room. Trump’s history with Bitcoin is hardly warm—he’s called it “not money” and criticized its volatility. But times have changed, and Bitcoin now enjoys support from institutional investors, making it less of a fringe asset.

The industry has also grown in many sectors. Now, people can play slots in Bitcoin casinos, such as Evo.io, engage in Bitcoin sports betting, stake crypto, use it for NFTs, and many other things.

The point is that the industry has come a long way even in regulatory uncertainty, so what will happen if Trump starts to make a regulatory path for crypto?

Regulation under Trump could go either way. A crackdown could stifle innovation, spook investors, and temporarily drag down prices. 

On the flip side, Trump could opt for a hands-off approach, letting the free market decide Bitcoin’s fate. With countries like El Salvador adopting Bitcoin as legal tender and the European Union advancing crypto frameworks, Trump might see an opportunity to bolster America’s standing in financial innovation.

Geopolitics and Bitcoin’s Role in the Global Economy

Trump’s presidency ties closely to tough trade policies, particularly with China. While these policies have little direct impact on Bitcoin, they could shake up global crypto dynamics. For example, tensions with China, a key player in Bitcoin mining, might disrupt the industry and influence prices.

Additionally, Trump’s use of sanctions as a geopolitical tool could accelerate the global move toward de-dollarization. Nations seeking alternatives to the U.S. dollar may turn to Bitcoin as a neutral asset. If this trend grows, Bitcoin could see increased adoption as a store of value on the global stage.

The Meme Coin Phenomenon

Trump’s reentry into the crypto conversation isn’t limited to policies; his recent endorsement of meme coins $TRUMP and $MELANIA grabbed headlines. These coins briefly skyrocketed to a combined market cap of $9.5 billion before crashing spectacularly, serving as a cautionary tale for speculative investors.

Days before his inauguration, Trump chose to make a MEME coin. It’s kind of hard to believe, to be honest.

Why? Well, most MEME coins have poor tokenomics, or they are essentially designed to be a rug-pull. Now, we are not saying that Trump’s and Melania’s MEME coins are rug-pulls, but they’ve definitely made that impression.

It doesn’t really look good for the crypto industry, and although he supports a cryptocurrency, it might negatively affect other ones like Bitcoin. Remember, MEME coins don’t have any actual value, so it is kind of a poor example to start with.

While these meme coins are more of a sideshow than a market driver, they highlight the volatility and hype-driven nature of crypto. However, Bitcoin operates in a different league. Its price movements are tied to macroeconomic factors like inflation, interest rates, and institutional adoption, not fleeting internet trends.

Institutional Adoption

One of the most significant developments in the crypto space is the increasing interest from institutional players. 

Firms like BlackRock and Fidelity are pushing for spot Bitcoin ETFs, signaling confidence in Bitcoin as a legitimate financial instrument. If Trump’s policies encourage financial innovation and deregulation, it could pave the way for more institutional involvement, driving up demand and, potentially, prices.

So, Will Bitcoin Soar Under Trump?

The short answer: it depends. Trump’s policies could either ignite or dampen Bitcoin’s momentum. The crypto market could flourish if he continues his pro-business, anti-regulation approach. However, his past criticism of Bitcoin and the potential for stricter oversight present risks.

Beyond Trump, the broader macroeconomic landscape will play a more significant role in Bitcoin’s trajectory. Inflation, interest rates, and global adoption are the real drivers behind Bitcoin’s price action, regardless of who sits in the Oval Office.

But one thing is for sure, there are plenty of green signals for the crypto industry.