Trump’s Inauguration: Will It Spark a Crypto Market Boom?

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As a researcher examining cryptocurrency trends, I’ve observed an intriguing pattern: The price of Bitcoin and the broader crypto market experienced a significant surge following Donald Trump’s election victory in November. This rally seemed to gather new momentum in the days preceding his inauguration on January 20th.

Supporters of cryptocurrency widely view Trump as their savior within the industry, fueled by his self-proclaimed stance as an advocate for crypto-friendly regulations. However, one must wonder if these expectations are based on fact or simply wishful thinking in the market?

In my analysis, during his passionate address in Nashville last July, President Trump declared ambitious intentions to turn the United States into the global leader in cryptocurrency. To bring this vision to life, he expressed his commitment to create a Strategic Bitcoin Reserve (SBR).

Last month, Trump expressed to CNBC that our goal is to achieve something remarkable using cryptocurrency, as we aim to keep pace and not let countries like China take the lead.

With whispers of inflation leading to economic concerns, it is anticipated that upon his return to the White House, Trump will implement a series of executive orders related to cryptocurrencies. The incoming administration has signaled its intention to ease regulations and form a Presidential Advisory Council on Cryptocurrency, which may consist of approximately 20 CEOs and founders who are closely associated with Trump, in order to ensure the industry’s perspective is heard within government. Additionally, they plan to revoke burdensome policies like SAB 121 and position the United States as a leading hub for Bitcoin mining, aiming to establish the country as a global center in this field.

Crypto cronies

The U.S. President, Trump, designated entrepreneur and podcast presenter, David Sacks, as the inaugural AI and Cryptocurrency Advisor.

Over the weekend, Sacks organized a “Cryptocurrency Gala” at the Andrew W. Mellon Auditorium in Washington D.C., on January 17th. This event was jointly hosted by BTC Inc., Stand With Crypto, Exodus, Anchorage Digital, and Kraken. The gala was supported by big names like MicroStrategy, MetaMask, Coinbase, Solana, Galaxy Digital, and many more.

Thrilled to attend Washington DC’s Crypto Ball — an event acknowledging @realDonaldTrump’s inauguration, highlighting American ingenuity, and showcasing the new administration’s progressive, crypto-embracing perspective. Organized by David Sacks, the self-proclaimed ‘Crypto Czar’, this gathering aims to assemble some of the most brilliant minds…

— Beniamin Mincu | acc 🔥🛠️ (@beniaminmincu) January 17, 2025

As per The New York Post’s reports, it appears that the newly elected President could be mulling over a ‘USA-first’ approach to cryptocurrency reserves, potentially incorporating Bitcoin alongside homegrown digital currencies such as XRP and Solana.

Is it possible for Donald Trump’s personal meme coin, TRUMP, currently valued at around $13 billion on the market, to be incorporated into such a reserve?

As per CoinGecko’s latest data, the meme coin built on Solana is currently valued at approximately $21. Initially launched with 200 million tokens available, it has a total supply of 1 billion. The remaining coins will be distributed gradually over the next three years.

It reached a high of $73.43 and currently hovers at around $66 at the time of writing.

According to information from Arkham, the United States government has roughly $20.63 billion in Bitcoin, which they’ve obtained through various law enforcement operations. This Bitcoin haul amounts to approximately 198,109 BTC. In addition to this, they also have other digital assets, including 54,753 Ethereum valued at around $189.03 million, about 122.13 million USDT ($122.13 million), and approximately 750.722 Wrapped Bitcoin worth $77.77 million.

Additionally, the government’s existing assets include Binance Coin (BNB), Aave (AAVE), USD Coin (USDC), and a few other cryptocurrencies.

Based on the anticipated effects of these advancements on the cryptocurrency sector, it’s likely that the market will keep expanding.

The establishment of a cryptocurrency reserve demonstrates robust governmental endorsement of Bitcoin as a form of value storage and strategic investment. Just like past instances of institutional acceptance, this action could boost Bitcoin’s popularity, decrease its availability in the market. This potential reduction might initiate a chain reaction worldwide, with additional governments following suit, thereby escalating demand.

Discussing possible price peaks for Bitcoin, it might exhibit a surge reminiscent of past institutional investment waves, potentially climbing as high as $120,000 to $150,000 within the next six to twelve months. The exact figure could vary based on market mood and economic conditions at large.

Emphasizing American-originated cryptocurrencies such as XRP and Solana could speed up their acceptance worldwide. These digital currencies might experience a surge of 30-50% in the near future, contingent upon the execution of the outlined strategy. Launching the TRUMP meme coin close to the inauguration seems like a calculated move to underscore Trump’s pro-cryptocurrency stance and stimulate enthusiasm among his followers.

A potential unnoticed outcome could be the government encroaching on territories it doesn’t usually manage, especially in the context of cryptocurrencies. While these policies may appear to be deregulation, they are actually regulated from above – a stark contrast to the ethos of self-governance and decentralization that is deeply rooted within the crypto community.

As a seasoned crypto investor, I’ve witnessed how deregulation can foster innovation, but I wonder about consumer protections in this scenario. Balancing these two aspects is no easy feat; it’s like navigating a tightrope. At Outset PR, I’ve observed that even the most well-intentioned policies can sometimes create tension between progress and supervision. Furthermore, political pledges often face challenges along the way before they come to fruition. If these deregulation efforts aren’t executed effectively, the market might react with a shrug of indifference rather than enthusiasm.

Closing Thoughts

Cryptocurrency fans have good reasons to feel optimistic, as the suggested policies might lead to a substantial increase in usage and worth.

The main challenge that cryptocurrencies have faced is often the opposition from governments, but if there’s a harmonious collaboration between policy-makers and the crypto industry, the prospects for expansion are extremely positive.

In the world of cryptocurrencies, it’s important to remember that success is often dependent on the effectiveness of implementation and the influence of outside factors. The extent and longevity of this growth will be determined by these elements.

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2025-01-19 21:36