Donald Trump: Will the Crypto Boom Begin Again After the Inauguration?
Date: 2025-01-20 Author: Oliver Abernathy Categories: BUSINESS
Trump’s victory in the November election led to a surge in the price of Bitcoin and other cryptocurrencies. The rally is gaining momentum ahead of his inauguration. His statements about supporting the crypto industry have raised hopes, but are they justified?
Last July, Trump promised to make the United States a leader in cryptocurrency. One of his initiatives was the proposal to create a Strategic Bitcoin Reserve (SBR). The new administration has also announced plans to remove regulatory restrictions, create a Presidential Cryptocurrency Council, and make the United States the center of the world’s mining industry.
Trump is expected to sign several executive orders in his first days in office aimed at supporting the crypto industry, including repealing measures like SAB 121 and simplifying regulations.
The inauguration on January 17 included a crypto ball hosted by David Sacks, the appointed first “crypto czar” of the United States. The event was attended by representatives of companies such as MicroStrategy, Coinbase, Solana, and Kraken.
According to the New York Post, Trump is considering a strategy to create a crypto reserve that would include Bitcoin, as well as projects with American origins, such as XRP and Solana.
The Official Trump meme token, issued on the basis of Solana, has a market cap of $13 billion. Its price at the time of writing was $21, although it had previously reached $73.43. This token is seen as a symbol of Trump’s commitment to the crypto industry.
According to Arkham, the US government owns about $20 billion worth of cryptocurrencies, including 198,109 BTC and other assets such as ETH, USDT, and BNB. The creation of a government crypto reserve could be a signal to other countries, leading to an increase in global demand for Bitcoin and other assets.
According to analysts, the price of Bitcoin could rise to $120,000-$150,000 within a year if the macroeconomic conditions are favorable. XRP and Solana could also show short-term growth of 30-50% if the government implements its plans.
Despite the ambitious plans, the question remains: how will the balance between deregulation and consumer protection be achieved? A top-down approach may contradict the principles of decentralization that underlie the crypto industry.
In addition, the implementation of political promises often faces obstacles. If the proposed initiatives are not implemented effectively, the market reaction may be muted.
The policies of the new US administration have the potential to give a powerful boost to the crypto market. However, its success will depend on the fulfillment of promises and external factors affecting the market. While enthusiasm among crypto enthusiasts is growing, only time will tell whether these expectations will be met.
