When Donald Trump officially took office as the 45th President of the United States, the cryptocurrency market experienced significant volatility. Even during his campaign, Trump had sparked hope for crypto enthusiasts with several promising remarks about the future of digital currencies. His positive stance on cryptocurrencies was widely recognized, and many industry professionals were optimistic about his leadership. Upon his inauguration, the market witnessed the launch of a meme coin called “TRUMP,” which reached a peak market cap of $7.5 billion, prompting a flurry of interest and trading within the crypto space.
Trump’s Impact on Cryptocurrency Post-Inauguration
Unquestionably, Trump’s ascent to the presidency was seen as a major boost for the cryptocurrency market. The question on many minds was: what direction would cryptocurrency take under his administration? Soontech, as an active participant and supporter in the crypto industry, has put forward several speculations based on the direction of crypto policy under Trump’s leadership:
1. Bitcoin in National Reserves
One of Trump’s earlier statements hinted at the possibility of including Bitcoin in the U.S. national reserves. If this measure were to materialize, it would undoubtedly boost market confidence. Bitcoin’s relationship with the U.S. dollar’s liquidity has been a key factor in its growth, and the confiscated Bitcoin from criminal activities still remains in limbo regarding its use. Should Bitcoin be integrated into national reserves, this could potentially open the floodgates for additional institutional and government funds. However, without actual capital influx to back this policy, its effects on Bitcoin’s price would be limited.
2. Relaxed Policies for Enterprises and Banks
Another significant development under Trump’s presidency would be the potential for a more lenient stance toward cryptocurrency-related policies, particularly for enterprises and banks. Allowing companies to treat Bitcoin as a tangible asset could drive more corporate purchases of Bitcoin. Furthermore, reports from Reuters suggested that Circle’s CEO mentioned that one of the initial 200 executive orders would aim to lift restrictions on banks dealing with cryptocurrencies. If banks were allowed to accept Bitcoin as collateral, this could serve as a powerful catalyst for the broader market, driving institutional adoption.
3. Continued Growth of AI Technology
The first half of 2024 saw the explosive rise of AI technologies, with major AI stocks like NVIDIA soaring. Crypto projects related to AI also experienced significant price increases, reflecting the potential synergy between the two industries. As we move into 2025, if AI continues to thrive, it could have a macro-positive impact on the cryptocurrency market, particularly in areas such as decentralized finance (DeFi) and blockchain innovations that intersect with AI.
4. Interest Rate Cuts and the Crypto Bull Market
2025 also marks the entry into a U.S. rate-cutting cycle. Historically, lower interest rates have been a catalyst for bull runs in both traditional markets and cryptocurrency markets. A favorable macroeconomic environment could stimulate greater investment in Bitcoin and other digital assets, further pushing the market towards higher valuations.
5. Bitcoin ETF Approval and Influx of Funds
Additionally, the approval of Bitcoin ETFs and the subsequent influx of capital could play a significant role in shaping the market’s trajectory. Bitcoin prices have been fluctuating between $100,000 and $110,000, but with the combination of favorable policies and institutional involvement, industry experts believe that Bitcoin’s price could reach between $150,000 and $200,000 by 2025. This surge would likely mark the beginning of a new crypto market boom, even though the exact timing of the breakout remains uncertain. Nonetheless, excitement is building around the potential for another massive rally.
Soontech will keep building
Soontech is a global blockchain technology product development supplier, offering a wide range of products, including white-label exchange systems, DEX, CEX (spot/contract/extended trading), liquidity services, public chain development, centralized and decentralized wallets, NFT platforms, and crypto trading payment solutions (crypto cards/OTC). We provide tailored rapid deployment solutions, enterprise-level trading enhancements, and seamless integration with major liquidity providers. Additionally, we offer 24/7 customer service and cloud hosting services. With over 1,000 clients and 400+ projects, Soontech’s business spans across more than 30 countries and regions.
We welcome you to join us in exploring the future of the cryptocurrency market together.
Jan 23, 2025